Market Newsdesk

July 21, 2021 6:28 am

Johnson & Johnson Reports Q2 2021 Results

– Strong sales growth of 27.1% to $23.3 Billion in Second Quarter 2021 with operational growth of 23.0%* and adjusted operational growth of 23.8%*

– EPS of $2.35 increased 72.8% in Second Quarter 2021 and adjusted EPS of $2.48 increased 48.5%*

– Company increasing 2021 Full-Year guidance for sales and EPS

PR Newswire

NEW BRUNSWICK, N.J., July 21, 2021 /PRNewswire/ — Johnson & Johnson (NYSE: JNJ) today announced results for second-quarter. “Our second-quarter results showcase Johnson & Johnson’s diversified portfolio, driven by strong sales and earnings growth across our Medical Device, Consumer Health and Pharmaceutical businesses,” said Alex Gorsky, Chairman and Chief Executive Officer. “I’m so proud of our 136,000 colleagues who remain focused on delivering our medicines and products to patients and consumers around the world, in addition to advancing our pipeline with new product launches and regulatory submissions. These accomplishments exemplify our commitment to advancing transformational innovations that improve the health of people and communities everywhere while continuing to deliver long-term value to all of our stakeholders.”

OVERALL FINANCIAL RESULTS

Q2
($ in Millions, except EPS)	2021	2020	% Change
Reported Sales	$ 23,312	$ 18,336	27.1%
Net Earnings	6,278	3,626	73.1
EPS (diluted)	$ 2.35	$ 1.36	72.8%

Q2
Non-GAAP* ($ in Millions, except EPS)	2021	2020	% Change
Operational Sales^1,2			23.0%
Adjusted Operational Sales^1,3			23.8
Adjusted Net Earnings^1,4	6,625	4,446	49.0
Adjusted EPS (diluted)^1,4	$ 2.48	$ 1.67	48.5%


¹	Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
²	Excludes the impact of translational currency
³	Excludes the net impact of acquisitions and divestitures and translational currency
⁴	Excludes intangible amortization expense and special items

REGIONAL SALES RESULTS

Q2			% Change
($ in Millions)	2021	2020	Reported	Operational^1,2	Currency	Adjusted Operational^1,3
U.S.	$ 11,919	$ 9,539	24.9%	24.9	–	25.1
International	11,393	8,797	29.5	20.9	8.6	22.4
Worldwide	$ 23,312	$ 18,336	27.1%	23.0	4.1	23.8


¹	Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
²	Excludes the impact of translational currency
³	Excludes the net impact of acquisitions and divestitures and translational currency
	Note: values may have been rounded

SEGMENT SALES RESULTS

Q2			% Change
($ in Millions)	2021	2020	Reported	Operational^1,2	Currency	Adjusted Operational^1,3
Consumer Health	$ 3,735	$ 3,296	13.3%	9.2	4.1	10.0
Pharmaceutical	12,599	10,752	17.2	13.6	3.6	14.1
Medical Devices	6,978	4,288	62.7	57.2	5.5	58.7
Worldwide	$ 23,312	$ 18,336	27.1%	23.0	4.1	23.8


¹	Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
²	Excludes the impact of translational currency
³	Excludes the net impact of acquisitions and divestitures and translational currency
	Note: values may have been rounded

Second Quarter 2021 SEGMENT COMMENTARY:

Consumer Health

Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, increased 10.0%* inclusive of the market recovery from COVID-19 impacts, primarily in skin health/beauty. Sales growth was driven by skin health/beauty products including NEUTROGENA, AVEENO, and OGX; over-the-counter products including ZYRTEC in upper respiratory products, international analgesics, and digestive health products; and BAND-AID^® Brand Adhesive Bandages in wound care products.

Pharmaceutical

Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 14.1%* driven by STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, DARZALEX (daratumumab), for the treatment of multiple myeloma, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, and for adults with active psoriatic arthritis, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, IMBRUVICA (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, and INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults. This growth was partially offset by biosimilar and generic competition, with declines primarily in REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases.

Medical Devices

Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 58.7%*, primarily driven by the benefit of market recovery from COVID-19 impacts and the associated deferral of medical procedures in the prior year across all of our businesses including Surgery, Orthopaedics, Vision and Interventional Solutions.

NOTABLE NEW ANNOUCEMENTS IN THE QUARTER:

The information contained in this section should be read in conjunction with Johnson & Johnson’s other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases available online in the Investors section of the company’s website at news releases.

Regulatory Decisions	TECNIS SYNERGY and TECNIS SYNERGY TORIC II IOLS a Next Generation Treatment for Cataract Patients Received Regulatory Approval and Launched in the U.S. and Canada	(press release)
		(press release)
	RYBREVANT (amivantamab-vmjw) Receives U.S. FDA Approval as the First Targeted Treatment for Patients with Non-Small Cell Lung Cancer with EGFR Exon 20 Insertion Mutations	(press release)
	PONVORY (ponesimod) receives European Commission approval for the Treatment of Adults with Relapsing Forms of Multiple Sclerosis with Active Disease Defined by Clinical or Imaging Features	(press release)
	DARZALEX (daratumumab) Subcutaneous (SC) Formulation Becomes the First Approved Treatment for Newly Diagnosed Systemic Light Chain Amyloidosis in Europe and Gains an Additional Approval in Pre-Treated Multiple Myeloma	(press release)
	DARZALEX FASPRO (daratumumab and hyaluronidase-fihj) Receives U.S. FDA Approval for Combination with Pomalidomide and Dexamethasone for Patients with Multiple Myeloma After First or Subsequent Relapse¹	(press release)
Regulatory Submissions	Janssen granted Breakthrough Therapy Designation from the U.S. FDA for Teclistamab for the Treatment of Relapsed or Refractory Multiple Myeloma	(press release)
	Janssen Submits Marketing Authorisation Application to the European Medicines Agency for BCMA CAR-T Therapy Ciltacabtagene Autoleucel (cilta-cel) for the Treatment of Relapsed and/or Refractory Multiple Myeloma	(press release)
	Janssen Submits New Drug Application to U.S. FDA for XARELTO (rivaroxaban) to Help Prevent and Treat Blood Clots in Pediatric Patients	(press release)
Other	Johnson & Johnson Joins World Health Organization in Efforts to Prevent Spread of Ebola in West Africa	(press release)
	Janssen Discontinues Collaboration and License Agreement with argenx for Cusatuzumab	(press release)
	ETHICON expands Advanced Bipolar Energy Portfolio with Launch of ENSEAL X1 Curved Jaw Tissue Sealer	(press release)
	Johnson & Johnson Announces Positive New Data for the Single-Shot COVID-19 Vaccine on Activity Against Delta Variant and Long-lasting Durability of Response	(press release)
	Johnson & Johnson Consumer Inc. Issues Voluntary Recall of Specific NEUTROGENA and AVEENO Aerosol Sunscreen Products Due to the Presence of Benzene¹	(press release)
¹Subsequent to the quarter

FULL-YEAR 2021 GUIDANCE:

Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson’s results computed in accordance with GAAP.

($ in Billions, except EPS)

April 2021

July 2021 (Base Business)

July 2021 (incl. COVID Vx)

Adjusted Operational Sales^1,2

Change vs. Prior Year

8.7% – 9.9%

9.5% – 10.5%

12.5% – 13.5%

Operational Sales²

Change vs. Prior Year

$89.3B – $90.3B

8.2% – 9.4%

$90.0B – $90.8B

9.0% – 10.0%

$92.5B – $93.3B

12.0% – 13.0%

Estimated Reported Sales³

Change vs. Prior Year

$90.6B – $91.6B

9.7% – 10.9%

$91.3B – $92.1B

10.5% – 11.5%

$93.8B – $94.6B

13.5% – 14.5%

Adjusted Operational EPS
(Diluted)^2,4

Change vs. Prior Year

$9.30 – $9.45

15.8% – 17.7%

$9.50 – $9.60

18.4% – 19.6%

Adjusted EPS (Diluted)^3,4

Change vs. Prior Year

$9.42 – $9.57

17.3% – 19.2%

$9.60 – $9.70

19.6% – 20.8%


¹	Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures
²	Non-GAAP financial measure; excludes the impact of translational currency
³	Calculated using Euro Average Rate: April 2021 = $1.19 and July 2021 = $1.19 (Illustrative purposes only)
⁴	Non-GAAP financial measure; excludes intangible amortization expense and special items
	Note: % may have been rounded

Other modeling considerations will be provided on the webcast.

WEBCAST INFORMATION:

Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website. A replay and podcast will be available approximately two hours after the live webcast in the Investors section of the company’s website at events-and-presentations.

ABOUT JOHNSON & JOHNSON:

At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That’s why for more than 130 years, we have aimed to keep people well at every age and every stage of life. Today, as the world’s largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.

NON-GAAP FINANCIAL MEASURES:

*Operational sales growth excluding the impact of translational currency, adjusted operational sales growth excluding the net impact of acquisitions and divestitures and translational currency, as well as adjusted net earnings, adjusted diluted earnings per share and adjusted operational diluted earnings per share excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investors section of the company’s website at quarterly-results.

Copies of the financial schedules accompanying this earnings release are available on the company’s website at quarterly-results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today’s earnings call presentation can also be found in the Investors section of the company’s website at quarterly-results.

NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS:

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions and other impacts to the business, or on the Company’s ability to execute business continuity plans, as a result of the COVID-19 pandemic, economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended January 3, 2021 including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” in the Company’s most recently filed Quarterly Report on Form 10-Q and the Company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	SECOND QUARTER						SIX MONTHS
			Percent Change						Percent Change
	2021	2020	Total		Operations	Currency	2021	2020	Total		Operations	Currency
Sales to customers by
segment of business

Consumer Health
U.S.	$ 1,751	1,557	12.4	%	12.4	–	$ 3,362	3,297	2.0	%	2.0	–
International	1,984	1,739	14.1		6.3	7.8	3,916	3,624	8.1		3.3	4.8
	3,735	3,296	13.3		9.2	4.1	7,278	6,921	5.2		2.7	2.5

Pharmaceutical
U.S.	6,869	6,120	12.2		12.2	–	13,315	12,181	9.3		9.3	–
International	5,730	4,632	23.7		15.4	8.3	11,483	9,705	18.3		11.4	6.9
	12,599	10,752	17.2		13.6	3.6	24,798	21,886	13.3		10.3	3.0

Medical Devices
U.S.	3,299	1,862	77.2		77.2	–	6,353	4,760	33.5		33.5	–
International	3,679	2,426	51.6		41.9	9.7	7,204	5,460	31.9		24.5	7.4
	6,978	4,288	62.7		57.2	5.5	13,557	10,220	32.7		28.7	4.0

U.S.	11,919	9,539	24.9		24.9	–	23,030	20,238	13.8		13.8	–
International	11,393	8,797	29.5		20.9	8.6	22,603	18,789	20.3		13.7	6.6
Worldwide	$ 23,312	18,336	27.1	%	23.0	4.1	$ 45,633	39,027	16.9	%	13.7	3.2

Note:Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	SECOND QUARTER						SIX MONTHS
			Percent Change						Percent Change
	2021	2020	Total		Operations	Currency	2021	2020	Total		Operations	Currency
Sales to customers by
geographic area

U.S.	$ 11,919	9,539	24.9	%	24.9	–	$ 23,030	20,238	13.8	%	13.8	–

Europe	5,668	4,063	39.5		28.6	10.9	11,082	8,890	24.7		15.6	9.1
Western Hemisphere excluding U.S.	1,367	1,133	20.6		12.7	7.9	2,791	2,635	5.9		5.4	0.5
Asia-Pacific, Africa	4,358	3,601	21.0		14.8	6.2	8,730	7,264	20.2		14.2	6.0
International	11,393	8,797	29.5		20.9	8.6	22,603	18,789	20.3		13.7	6.6

Worldwide	$ 23,312	18,336	27.1	%	23.0	4.1	$ 45,633	39,027	16.9	%	13.7	3.2

Note:Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)	SECOND QUARTER

	2021			2020			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 23,312		100.0	$ 18,336		100.0	27.1
Cost of products sold	7,587		32.5	6,579		35.9	15.3
Gross Profit	15,725		67.5	11,757		64.1	33.8
Selling, marketing and administrative expenses	6,073		26.1	4,993		27.2	21.6
Research and development expense	3,394		14.6	2,707		14.8	25.4
In-process research and development	0		0.0	6		0.0
Interest (income) expense, net	28		0.1	26		0.2
Other (income) expense, net	(488)		(2.1)	24		0.1
Restructuring	56		0.2	61		0.3
Earnings before provision for taxes on income	6,662		28.6	3,940		21.5	69.1
Provision for taxes on income	384		1.7	314		1.7	22.3
Net earnings	$ 6,278		26.9	$ 3,626		19.8	73.1

Net earnings per share (Diluted)	$ 2.35			$ 1.36			72.8

Average shares outstanding (Diluted)	2,671.6			2,665.5

Effective tax rate	5.8	%		8.0	%

Adjusted earnings before provision for taxes and net earnings ⁽¹⁾
Earnings before provision for taxes on income	$ 7,776		33.4	$ 5,337		29.1	45.7
Net earnings	$ 6,625		28.4	$ 4,446		24.2	49.0
Net earnings per share (Diluted)	$ 2.48			$ 1.67			48.5
Effective tax rate	14.8	%		16.7	%

⁽¹⁾See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)	SIX MONTHS

	2021			2020			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 45,633		100.0	$ 39,027		100.0	16.9
Cost of products sold	14,650		32.1	13,641		35.0	7.4
Gross Profit	30,983		67.9	25,386		65.0	22.0
Selling, marketing and administrative expenses	11,505		25.2	10,196		26.1	12.8
Research and development expense	6,572		14.4	5,287		13.5	24.3
In-process research and development	0		0.0	6		0.0
Interest (income) expense, net	76		0.2	(16)		0.0
Other (income) expense, net	(1,370)		(3.0)	(655)		(1.7)
Restructuring	109		0.2	119		0.3
Earnings before provision for taxes on income	14,091		30.9	10,449		26.8	34.9
Provision for taxes on income	1,616		3.6	1,027		2.7	57.4
Net earnings	$ 12,475		27.3	$ 9,422		24.1	32.4

Net earnings per share (Diluted)	$ 4.67			$ 3.53			32.3

Average shares outstanding (Diluted)	2,674.0			2,671.0

Effective tax rate	11.5	%		9.8	%

Adjusted earnings before provision for taxes and net earnings ⁽¹⁾
Earnings before provision for taxes on income	$ 16,067		35.2	$ 12,581		32.2	27.7
Net earnings	$ 13,549		29.7	$ 10,600		27.2	27.8
Net earnings per share (Diluted)	$ 5.07			$ 3.97			27.7
Effective tax rate	15.7	%		15.7	%

⁽¹⁾See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures

		Second Quarter		Six Months Ended
	(Dollars in Millions Except Per Share Data)	2021	2020	2021	2020
	Net Earnings, after tax- as reported	$6,278	$3,626	$12,475	$9,422

	Pre-tax Adjustments
	Intangible Asset Amortization expense	1,202	1,127	2,417	2,245
	Litigation related	(23)	613	(23)	733
	IPR&D	–	6	–	6
	Restructuring related	108	115	212	233
	Acquisition, integration and divestiture related ¹	14	29	(524)	(933)
	Unrealized (gains)/losses on securities	(243)	(533)	(208)	(206)
	Medical Device Regulation	56	37	102	51
	Other	–	3	–	3

	Tax Adjustments
	Tax impact on special item adjustments ²	(135)	(253)	(248)	(520)
	Tax legislation and other tax related	(632)	(324)	(654)	(434)
	Adjusted Net Earnings, after tax	$6,625	$4,446	$13,549	$10,600
	Average shares outstanding (Diluted)	2,671.6	2,665.5	2,674.0	2,671.0
	Adjusted net earnings per share (Diluted)	$2.48	$1.67	$5.07	$3.97
	Operational adjusted net earnings per share (Diluted)	$2.42		$4.91

	Notes:
¹	Acquisition, integration and divestiture related for the six months of 2021 primarily includes the gain on the divestiture of two Pharmaceutical brands outside of the U.S. The six months of 2020 primarily includes a $983M Contingent Consideration reversal related to the timing of certain developmental milestones associated with the Auris Health acquisition.

^²	The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure

Adjusted Operational Sales Growth
SECOND QUARTER 2021 ACTUAL vs. 2020 ACTUAL

Segments

	Consumer Health	Pharmaceutical	Medical Devices	Total

WW As Reported	13.3%	17.2%	62.7%	27.1%
U.S.	12.4%	12.2%	77.2%	24.9%
International	14.1%	23.7%	51.6%	29.5%

WW Currency	4.1	3.6	5.5	4.1
U.S.	–	–	–	–
International	7.8	8.3	9.7	8.6

WW Operational	9.2%	13.6%	57.2%	23.0%
U.S.	12.4%	12.2%	77.2%	24.9%
International	6.3%	15.4%	41.9%	20.9%

General Surgery
*Advanced Sterilization Products*			1.2	0.2
U.S.			0.0	0.0
International			1.9	0.4

All Other Acquisitions and Divestitures	0.8	0.6	0.3	0.6
U.S.	0.6	(0.1)	0.7	0.1
International	1.1	1.5	0.0	1.0

WW Adjusted Operational	10.0%	14.1%	58.7%	23.8%
U.S.	13.0%	12.1%	77.9%	25.1%
International	7.4%	16.8%	43.8%	22.4%

Note: Percentages are based on actual, non-rounded figures and may not sum

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure

Adjusted Operational Sales Growth
SIX MONTHS 2021 ACTUAL vs. 2020 ACTUAL

Segments

	Consumer Health	Pharmaceutical	Medical Devices	Total

WW As Reported	5.2%	13.3%	32.7%	16.9%
U.S.	2.0%	9.3%	33.5%	13.8%
International	8.1%	18.3%	31.9%	20.3%

WW Currency	2.5	3.0	4.0	3.2
U.S.	–	–	–	–
International	4.8	6.9	7.4	6.6

WW Operational	2.7%	10.3%	28.7%	13.7%
U.S.	2.0%	9.3%	33.5%	13.8%
International	3.3%	11.4%	24.5%	13.7%

General Surgery
*Advanced Sterilization Products*			0.8	0.2
U.S.			0.0	0.0
International			1.5	0.4

All Other Acquisitions and Divestitures	0.6	0.5	0.2	0.4
U.S.	0.5	(0.1)	0.5	0.1
International	0.7	1.2	0.0	0.8

WW Adjusted Operational	3.3%	10.7%	29.7%	14.4%
U.S.	2.5%	9.2%	33.9%	13.9%
International	4.0%	12.6%	26.0%	14.8%

Note: Percentages are based on actual, non-rounded figures and may not sum

		REPORTED SALES vs. PRIOR PERIOD ($MM)					REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER						SIX MONTHS
				% Change					% Change
		2021	2020	Reported	Operational ⁽¹⁾	Currency	2021	2020	Reported	Operational ⁽¹⁾	Currency
CONSUMER HEALTH SEGMENT ⁽²⁾
OTC
US		$ 675	627	7.7%	7.7%	–	$ 1,274	1,316	-3.2%	-3.2%	–
Intl		633	522	21.2%	10.4%	10.8%	1,208	1,181	2.3%	-4.7%	7.0%
WW		1,307	1,149	13.8%	8.9%	4.9%	2,482	2,497	-0.6%	-3.9%	3.3%
SKIN HEALTH / BEAUTY
US		659	536	23.0%	23.0%	–	1,293	1,195	8.2%	8.2%	–
Intl		511	471	8.4%	1.4%	7.0%	1,040	929	12.0%	6.8%	5.2%
WW		1,170	1,007	16.2%	12.9%	3.3%	2,333	2,124	9.8%	7.6%	2.2%
ORAL CARE
US		165	170	-3.1%	-3.1%	–	328	346	-5.2%	-5.2%	–
Intl		260	227	14.6%	6.7%	7.9%	514	446	15.3%	10.2%	5.1%
WW		426	397	7.0%	2.5%	4.5%	843	792	6.3%	3.5%	2.8%
BABY CARE
US		97	96	0.8%	0.8%	–	193	188	2.4%	2.4%	–
Intl		290	260	11.5%	6.6%	4.9%	583	529	10.2%	9.0%	1.2%
WW		387	356	8.6%	5.0%	3.6%	776	717	8.1%	7.3%	0.8%
WOMEN’S HEALTH
US		3	3	-3.1%	-3.1%	–	6	7	-16.0%	-16.0%	–
Intl		227	199	14.2%	9.2%	5.0%	446	427	4.5%	3.1%	1.4%
WW		230	202	13.9%	9.0%	4.9%	452	434	4.2%	2.8%	1.4%
WOUND CARE / OTHER
US		153	126	20.9%	20.9%	–	268	245	9.3%	9.3%	–
Intl		64	59	7.3%	-2.8%	10.1%	125	111	12.1%	5.2%	6.9%
WW		216	185	16.6%	13.4%	3.2%	393	356	10.2%	8.0%	2.2%

TOTAL CONSUMER HEALTH
US		1,751	1,557	12.4%	12.4%	–	3,362	3,297	2.0%	2.0%	–
Intl		1,984	1,739	14.1%	6.3%	7.8%	3,916	3,624	8.1%	3.3%	4.8%
WW		$ 3,735	3,296	13.3%	9.2%	4.1%	$ 7,278	6,921	5.2%	2.7%	2.5%


See footnotes at end of schedule

	REPORTED SALES vs. PRIOR PERIOD ($MM)							REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER						SIX MONTHS
				% Change						% Change
PHARMACEUTICAL SEGMENT ^(2,3)		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency

IMMUNOLOGY
US		$ 2,748	2,362	16.4%	16.4%	–		$ 5,161	4,772	8.2%	8.2%	–
Intl		1,483	1,161	27.7%	18.2%	9.5%		2,984	2,389	24.9%	17.0%	7.9%
WW		4,231	3,523	20.1%	17.0%	3.1%		8,145	7,161	13.7%	11.1%	2.6%
REMICADE
US		540	593	-9.1%	-9.1%	–		1,029	1,218	-15.6%	-15.6%	–
US Exports ⁽⁴⁾		93	133	-30.0%	-30.0%	–		150	243	-38.2%	-38.2%	–
Intl		255	208	22.4%	11.1%	11.3%		487	464	4.9%	-1.7%	6.6%
WW		888	935	-5.1%	-7.6%	2.5%		1,665	1,925	-13.5%	-15.1%	1.6%
SIMPONI / SIMPONI ARIA
US		290	256	12.8%	12.8%	–		545	528	3.2%	3.2%	–
Intl		294	289	1.7%	-3.8%	5.5%		601	547	9.8%	4.5%	5.3%
WW		584	546	6.9%	4.0%	2.9%		1,146	1,075	6.6%	3.8%	2.8%
STELARA
US		1,496	1,138	31.4%	31.4%	–		2,827	2,355	20.0%	20.0%	–
Intl		778	558	39.2%	28.6%	10.6%		1,595	1,161	37.3%	28.1%	9.2%
WW		2,274	1,697	34.0%	30.5%	3.5%		4,422	3,516	25.8%	22.7%	3.1%
TREMFYA
US		325	241	35.0%	35.0%	–		599	428	40.0%	40.0%	–
Intl		155	101	52.3%	41.1%	11.2%		298	210	41.8%	31.8%	10.0%
WW		479	342	40.2%	36.8%	3.4%		897	638	40.6%	37.3%	3.3%
OTHER IMMUNOLOGY
US		5	–	*	*	–		12	–	*	*	–
Intl		1	3	-61.3%	-67.9%	6.6%		3	6	-51.2%	-53.9%	2.7%
WW		7	3	*	*	*		15	6	*	*	*
INFECTIOUS DISEASES
US		444	416	6.8%	6.8%	–		956	852	12.2%	12.2%	–
Intl		585	463	26.3%	18.2%	8.1%		1,079	946	14.1%	7.8%	6.3%
WW		1,028	878	17.1%	12.8%	4.3%		2,035	1,798	13.2%	9.9%	3.3%
COVID-19 VACCINE
US		51	–	*	*	–		151	–	*	*	–
Intl		113	–	*	*	–		113	–	*	*	–
WW		164	–	*	*	–		264	–	*	*	–
EDURANT / rilpivirine
US		9	10	-9.3%	-9.3%	–		19	22	-10.9%	-10.9%	–
Intl		253	246	2.8%	-4.0%	6.8%		486	458	6.0%	-1.7%	7.7%
WW		262	256	2.3%	-4.2%	6.5%		505	480	5.2%	-2.1%	7.3%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US		368	379	-3.2%	-3.2%	–		748	775	-3.5%	-3.5%	–
Intl		137	130	5.5%	-5.9%	11.4%		303	314	-3.5%	-8.5%	5.0%
WW		505	510	-1.0%	-3.9%	2.9%		1,051	1,089	-3.5%	-5.0%	1.5%
OTHER INFECTIOUS DISEASES
US		16	25	-36.2%	-36.2%	–		37	54	-31.3%	-31.3%	–
Intl		81	87	-6.2%	-13.4%	7.2%		177	174	1.8%	-3.0%	4.8%
WW		98	113	-13.0%	-18.5%	5.5%		215	229	-6.1%	-9.7%	3.6%


		REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER						SIX MONTHS
				% Change						% Change
		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency
NEUROSCIENCE
US		842	778	8.0%	8.0%	–		1,613	1,526	5.6%	5.6%	–
Intl		967	809	19.6%	13.1%	6.5%		1,916	1,719	11.5%	6.3%	5.2%
WW		1,808	1,587	13.9%	10.6%	3.3%		3,529	3,245	8.7%	6.0%	2.7%
CONCERTA / Methylphenidate
US		35	55	-36.0%	-36.0%	–		82	107	-23.1%	-23.1%	–
Intl		127	94	33.7%	25.6%	8.1%		250	212	17.5%	11.1%	6.4%
WW		161	149	8.1%	3.0%	5.1%		332	320	3.9%	-0.3%	4.2%
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
US		645	576	11.9%	11.9%	–		1,234	1,120	10.2%	10.2%	–
Intl		380	303	25.1%	15.9%	9.2%		756	642	17.7%	9.9%	7.8%
WW		1,024	879	16.4%	13.3%	3.1%		1,989	1,762	12.9%	10.1%	2.8%
RISPERDAL CONSTA
US		72	74	-3.0%	-3.0%	–		139	150	-7.5%	-7.5%	–
Intl		84	79	6.4%	0.2%	6.2%		173	173	0.4%	-4.6%	5.0%
WW		155	153	1.9%	-1.3%	3.2%		312	323	-3.3%	-6.0%	2.7%
OTHER NEUROSCIENCE
US		91	75	20.9%	20.9%	–		158	150	5.6%	5.6%	–
Intl		377	331	13.8%	10.0%	3.8%		738	691	6.7%	4.3%	2.4%
WW		468	406	15.1%	12.0%	3.1%		896	841	6.5%	4.5%	2.0%
ONCOLOGY
US		1,462	1,181	23.7%	23.7%	–		2,839	2,356	20.5%	20.5%	–
Intl		2,073	1,609	28.8%	19.8%	9.0%		4,266	3,448	23.7%	16.2%	7.5%
WW		3,535	2,791	26.7%	21.5%	5.2%		7,105	5,804	22.4%	17.9%	4.5%
DARZALEX
US		770	492	56.7%	56.7%	–		1,461	955	53.1%	53.1%	–
Intl		663	409	62.1%	50.3%	11.8%		1,337	883	51.4%	42.3%	9.1%
WW		1,433	901	59.2%	53.8%	5.4%		2,798	1,838	52.2%	47.9%	4.3%
ERLEADA
US		193	136	41.5%	41.5%	–		364	255	42.7%	42.7%	–
Intl		109	33	*	*	*		199	57	*	*	*
WW		302	170	77.6%	73.7%	3.9%		563	313	80.0%	76.4%	3.6%
IMBRUVICA
US		454	447	1.7%	1.7%	–		898	879	2.2%	2.2%	–
Intl		662	502	31.9%	22.1%	9.8%		1,342	1,101	21.9%	14.2%	7.7%
WW		1,116	949	17.7%	12.5%	5.2%		2,241	1,980	13.2%	8.9%	4.3%
ZYTIGA / abiraterone acetate
US		21	87	-75.3%	-75.3%	–		71	226	-68.5%	-68.5%	–
Intl		542	480	12.8%	5.4%	7.4%		1,130	1,032	9.5%	2.5%	7.0%
WW		563	568	-0.8%	-7.1%	6.3%		1,201	1,258	-4.5%	-10.3%	5.8%
OTHER ONCOLOGY
US		23	20	18.8%	18.8%	–		44	42	6.3%	6.3%	–
Intl		97	185	-47.2%	-49.6%	2.4%		258	375	-31.0%	-34.3%	3.3%
WW		120	204	-40.9%	-43.0%	2.1%		302	416	-27.3%	-30.2%	2.9%

		REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER						SIX MONTHS
				% Change						% Change
		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency
PULMONARY HYPERTENSION
US		595	545	9.0%	9.0%	–		1,168	1,031	13.2%	13.2%	–
Intl		275	243	13.5%	7.9%	5.6%		563	503	12.1%	6.7%	5.4%
WW		870	789	10.4%	8.7%	1.7%		1,731	1,534	12.9%	11.1%	1.8%
OPSUMIT
US		290	256	13.6%	13.6%	–		562	485	15.9%	15.9%	–
Intl		172	150	14.9%	9.0%	5.9%		351	310	13.1%	7.6%	5.5%
WW		463	406	14.1%	11.9%	2.2%		913	795	14.8%	12.7%	2.1%
UPTRAVI
US		268	254	6.0%	6.0%	–		527	466	13.3%	13.3%	–
Intl		45	28	54.9%	42.9%	12.0%		91	66	36.8%	27.4%	9.4%
WW		313	282	11.0%	9.8%	1.2%		618	532	16.2%	15.0%	1.2%
OTHER PULMONARY HYPERTENSION
US		36	37	-2.4%	-2.4%	–		78	81	-3.0%	-3.0%	–
Intl		59	64	-8.2%	-10.3%	2.1%		122	126	-3.5%	-6.3%	2.8%
WW		95	101	-6.1%	-7.5%	1.4%		200	207	-3.3%	-5.0%	1.7%
CARDIOVASCULAR / METABOLISM / OTHER
US		780	837	-6.9%	-6.9%	–		1,579	1,643	-3.9%	-3.9%	–
Intl		346	347	-0.3%	-8.4%	8.1%		674	701	-3.8%	-9.9%	6.1%
WW		1,126	1,184	-5.0%	-7.3%	2.3%		2,253	2,344	-3.9%	-5.7%	1.8%
XARELTO
US		569	559	1.8%	1.8%	–		1,158	1,086	6.6%	6.6%	–
Intl		–	–	–	–	–		–	–	–	–	–
WW		569	559	1.8%	1.8%	–		1,158	1,086	6.6%	6.6%	–
INVOKANA / INVOKAMET
US		96	132	-27.0%	-27.0%	–		183	249	-26.6%	-26.6%	–
Intl		64	47	33.8%	22.1%	11.7%		127	105	20.3%	12.2%	8.1%
WW		160	179	-10.9%	-14.0%	3.1%		310	354	-12.6%	-15.0%	2.4%
PROCRIT / EPREX
US		59	70	-16.3%	-16.3%	–		121	146	-17.3%	-17.3%	–
Intl		69	66	3.7%	-4.5%	8.2%		133	145	-8.2%	-14.1%	5.9%
WW		127	136	-6.6%	-10.6%	4.0%		254	291	-12.8%	-15.7%	2.9%
OTHER
US		57	78	-26.7%	-26.7%	–		117	163	-27.8%	-27.8%	–
Intl		214	234	-8.4%	-15.7%	7.3%		415	451	-8.1%	-13.7%	5.6%
WW		271	312	-13.0%	-18.4%	5.4%		532	614	-13.3%	-17.4%	4.1%
TOTAL PHARMACEUTICAL
US		6,869	6,120	12.2%	12.2%	–		13,315	12,181	9.3%	9.3%	–
Intl		5,730	4,632	23.7%	15.4%	8.3%		11,483	9,705	18.3%	11.4%	6.9%
WW		$ 12,599	10,752	17.2%	13.6%	3.6%		$ 24,798	21,886	13.3%	10.3%	3.0%

See footnotes at end of schedule

	REPORTED SALES vs. PRIOR PERIOD ($MM)							REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER						SIX MONTHS
				% Change						% Change
MEDICAL DEVICES SEGMENT ⁽²⁾		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency

INTERVENTIONAL SOLUTIONS
US		$ 475	255	86.5%	86.5%	–		909	620	46.7%	46.7%	–
Intl		572	335	70.5%	59.8%	10.7%		1,086	697	55.7%	46.4%	9.3%
WW		1,046	590	77.4%	71.3%	6.1%		1,995	1,317	51.5%	46.5%	5.0%
ORTHOPAEDICS
US		1,323	869	52.3%	52.3%	–		2,572	2,119	21.4%	21.4%	–
Intl		904	583	55.1%	43.2%	11.9%		1,768	1,371	29.0%	20.2%	8.8%
WW		2,227	1,451	53.4%	48.6%	4.8%		4,340	3,489	24.4%	20.9%	3.5%
HIPS
US		234	137	70.5%	70.5%	–		444	343	29.6%	29.6%	–
Intl		159	88	78.6%	64.3%	14.3%		305	220	38.3%	28.6%	9.7%
WW		392	226	73.7%	68.1%	5.6%		749	563	33.0%	29.2%	3.8%
KNEES
US		210	108	94.3%	94.3%	–		395	322	22.7%	22.7%	–
Intl		140	66	*	95.1%	16.8%		272	196	39.2%	29.5%	9.7%
WW		350	174	*	94.6%	6.4%		667	517	28.9%	25.2%	3.7%
TRAUMA
US		447	354	26.0%	26.0%	–		897	761	17.8%	17.8%	–
Intl		263	198	32.7%	22.7%	10.0%		545	445	22.5%	14.4%	8.1%
WW		710	553	28.4%	24.8%	3.6%		1,443	1,207	19.6%	16.5%	3.1%
SPINE, SPORTS & OTHER
US		433	270	60.6%	60.6%	–		836	693	20.7%	20.7%	–
Intl		343	230	49.0%	37.9%	11.1%		646	510	26.7%	18.0%	8.7%
WW		776	499	55.3%	50.2%	5.1%		1,482	1,202	23.2%	19.6%	3.6%

REPORTED SALES vs. PRIOR PERIOD ($MM)

SECOND QUARTER

SIX MONTHS

% Change

2021

2020

Reported

Operational ⁽¹⁾

Currency

2021

2020

Reported

Operational ⁽¹⁾

Currency

SURGERY

1,035

490

–

1,933

1,334

44.9%

–

Intl

1,487

1,060

40.2%

30.6%

9.6%

2,961

2,317

27.8%

20.4%

7.4%

2,522

1,551

62.6%

56.0%

6.6%

4,894

3,651

34.0%

29.3%

4.7%

ADVANCED

459

277

65.4%

–

864

658

31.3%

–

Intl

708

498

42.2%

32.5%

9.7%

1,421

1,065

33.4%

25.6%

7.8%

1,168

775

50.5%

44.3%

6.2%

2,286

1,723

32.6%

27.8%

4.8%

GENERAL

576

213

–

1,069

676

58.1%

–

Intl

779

562

38.5%

28.9%

9.6%

1,540

1,252

23.0%

15.9%

7.1%

1,354

775

74.7%

67.8%

6.9%

2,608

1,928

35.3%

30.7%

4.6%

VISION

467

248

88.3%

–

939

687

36.6%

–

Intl

716

447

60.0%

53.7%

6.3%

1,389

1,075

29.2%

24.6%

4.6%

1,183

695

70.1%

66.0%

4.1%

2,328

1,762

32.1%

29.3%

2.8%

CONTACT LENSES / OTHER

352

203

73.3%

–

723

549

31.6%

–

Intl

517

352

47.0%

41.9%

5.1%

1,003

819

22.5%

18.5%

4.0%

868

554

56.7%

53.4%

3.3%

1,725

1,368

26.1%

23.7%

2.4%

SURGICAL

115

–

216

138

56.3%

–

Intl

199

97.1%

10.6%

386

256

50.9%

44.4%

6.5%

314

141

602

394

52.8%

48.6%

4.2%

TOTAL MEDICAL DEVICES

3,299

1,862

77.2%

–

6,353

4,760

33.5%

–

Intl

3,679

2,426

51.6%

41.9%

9.7%

7,204

5,460

31.9%

24.5%

7.4%

$ 6,978

4,288

62.7%

57.2%

5.5%

$ 13,557

10,220

32.7%

28.7%

4.0%

Note: Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures and,
therefore, may not recalculate precisely.

* Percentage greater than 100% or not meaningful

(1) Operational growth excludes the effect of translational currency

(2) Unaudited

(3) Certain prior year amounts have been reclassified to conform to current year product disclosures

(4) Reported as U.S. sales

View original content to download multimedia:https://www.prnewswire.com/news-releases/johnson–johnson-reports-q2-2021-results-301338422.html

SOURCE Johnson & Johnson

July 21, 2021 6:03 am

TTM Technologies Speeds Up PCB Solder Mask Processing With Orbotech Neos™ 800 Additive Printing Solution

Innovative, environmentally friendly inkjet processes transform the way solder mask is applied to PCBs for advanced electronics

PR Newswire

YAVNE, Israel, July 21, 2021 /PRNewswire/ — Orbotech, a KLA (NASDAQ: KLAC) company, today announced that TTM Technologies, a global manufacturer of printed circuit boards and radio frequency components and assemblies, purchased and installed an Orbotech Neos™ 800, transforming the way solder mask is applied to PCBs. The recently available Orbotech Neos 800 inkjet solution replaces conventional solder mask (SM) processing with innovative additive SM printing. In this new installation, TTM cut the SM sequence by half compared to the existing conventional process, making it more efficient, reducing chemical waste and significantly cutting manufacturing turn-around time – an important capability in today’s fast-moving electronics industry.

TTM selected the Orbotech Neos 800 for its Stafford, Connecticut site following a rigorous testing and qualification program. TTM’s global PCB customers include leaders in aerospace, defense, automotive, computing and medical.

“We are very excited to have brought this groundbreaking, environmentally-friendly technology in-house,” said Phil Titterton, chief operating officer at TTM Technologies. “Additive printing of solder mask is a significant improvement for us, as it eliminates process steps compared to the way we typically apply solder mask. This high-speed solution is 100% additive with no mess, less power, fewer chemicals, and substantial material savings. The Orbotech Neos enables us to increase our productivity in a smaller footprint on the factory floor while providing high-quality products to our customers.”

Currently available in the U.S. and Europe, the Orbotech Neos 800 combines several SM processing steps into a single multi-functional system, eliminating several manufacturing stages such as coating, tack-drying, exposure and developing. This streamlined, environmentally friendly, additive process increases productivity and ensures the consistent, high-quality printing that is critical to high volume manufacturing. It also enables reduced material and power consumption, as well as the associated labor and equipment maintenance costs, thereby decreasing the total cost of ownership.

“The Orbotech Neos 800 is another example of a disruptive technology coming to market from Orbotech, validating our innovative approach to manufacturing,” said Yair Alcobi, president of the PCB division at Orbotech. “In the short time since it has been available, this technology has gained traction with customers. We’re hearing from them that as the demand for advanced PCBs rises, shorter time to market and increased productivity with less waste and energy are the main drivers in their decisions to bring the Orbotech Neos on board.”

At the core of the Orbotech Neos are two proprietary technologies: the new Structural Printing Technology™, enabling 3D-like quality printing, and the field-proven DotStream Pro Technology™, enabling precise solder mask printing at high speeds. Orbotech Neos can also print serialization data including 2D barcodes at multiple levels for advanced traceability capabilities.

For more information on the Orbotech Neos 800, please go to: https://www.orbotech.com/pcb/products/orbotech-neos-series

For the Orbotech Neos product video, please go to: https://youtu.be/OI9HjUOJfF4

About Orbotech Ltd.:
Orbotech Ltd., a KLA company, is a leading global supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products. Orbotech provides cutting-edge solutions for use in the manufacture of printed circuit boards (PCBs) and flat panel displays (FPDs), as well as software for PCB computer aided manufacturing (CAM), engineering and Industry 4.0. Orbotech’s solutions are designed to enable the mass production of innovative, next-generation electronics and improve the cost effectiveness of existing and future electronics production processes. For more information, visit www.orbotech.com or www.frontline-pcb.com.

About KLA:
KLA develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging, printed circuit boards and flat panel displays. In close collaboration with leading customers across the globe, our expert teams of physicists, engineers, data scientists and problem-solvers design solutions that move the world forward. Additional information may be found at kla.com (KLAC-P).

About TTM
TTM Technologies, Inc. is a leading global printed circuit board manufacturer, focusing on quick-turn and volume production of technologically advanced PCBs and backplane assemblies as well as a global designer and manufacturer of high-frequency radio frequency (RF) and microwave components and assemblies. TTM stands for time-to-market, representing how TTM’s time-critical, one-stop manufacturing services enable customers to shorten the time required to develop new products and bring them to market. Additional information can be found at www.ttm.com.

Forward Looking Statements: This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements, including statements regarding the expected performance of the
Orbotech Neos™ series of solutions and its expected operational, economic and environmental benefits,
are subject to risks and uncertainties. Factors that may cause actual results to differ materially from those projected and anticipated in the forward-looking statements in this press release include delays in the adoption of new technologies (whether due to cost or performance issues or otherwise), the introduction of competing products by other companies or unanticipated technology challenges or limitations that affect the implementation, performance or use of Orbotech’s and KLA’s products, and other risk factors included in KLA’s annual report on Form 10-K for the year ended June 30, 2020 and other filings with the Securities and Exchange Commission (including, without limitation, the risk factors described therein). KLA and Orbotech assume no obligation to, and do not currently intend to, update these forward-looking statements.

View original content to download multimedia:https://www.prnewswire.com/news-releases/ttm-technologies-speeds-up-pcb-solder-mask-processing-with-orbotech-neos-800-additive-printing-solution-301338092.html

SOURCE KLA Corporation

July 21, 2021 6:03 am

Target and Ulta Beauty Announce Brands and First Locations Ahead of Highly Anticipated August Launch

An unparalleled, curated beauty experience with expertly trained consultants, Ulta Beauty at Target will launch in more than 100 Target stores and Target.com

PR Newswire

MINNEAPOLIS and BOLINGBROOK, Ill., July 21, 2021 /PRNewswire/ — Target Corporation (NYSE: TGT) and Ulta Beauty (NASDAQ: ULTA) today shared details about the highly anticipated Ulta Beauty at Target, slated to begin rolling out in more than 100 Target stores nationwide and online with more than 50 specially curated prestige brands this August. The differentiated retail concept pairs Ulta Beauty’s industry authority with Target’s beloved experience, bringing a one-of-a-kind beauty experience to millions of guests. The companies are planning for these experiential “shop-in-shops” to reach a total of 800 Target stores across the country in the coming years.

“As the retail and beauty industries continue to evolve, we take pride in being leaders that continually redefine and elevate guest experiences. Ulta Beauty at Target reflects our commitment to drive the industry forward and keep our guests meaningfully engaged,” said Kecia Steelman, chief operating officer, Ulta Beauty. “Our dynamic teams have worked together to create a disruptive, exciting way to discover prestige beauty with a thoughtfully curated assortment and knowledgeable, approachable experts to serve as beauty gurus.”

The two trusted retailers partnered to create an industry-first shopping destination based on their expertise in beauty, curation and guest-centric experiences. The Ulta Beauty at Target assortment of prestige brands includes, but is not limited to, the following: Anastasia Beverly Hills, Ariana Grande, bareMinerals, Bumble and bumble, Clinique, Drybar, IT Cosmetics, Jack Black, Juvia’s Place, MAC Cosmetics, Madison Reed, Morphe, PATTERN, Philosophy, Smashbox, St. Tropez, Sunday Riley, Tarte, The Ordinary, Too Faced, TULA Skincare, Ulta Beauty Collection and Urban Decay, among others. The full list of brands, including some that are exclusive to Ulta Beauty, can be found on A Bullseye View.

“Ulta Beauty at Target is unmatched in the industry, bringing guests the opportunity to discover new prestige brands while they shop Target’s incredible beauty assortment. This unique partnership is another way we continue to elevate the guest experience across our multi-category business to drive traffic and preference as we meet guests’ needs in innovative ways,” saidChristina Hennington, executive vice president and chief growth officer, Target. “With two powerhouse retailers, our collective brand love, loyalty and omnichannel expertise will inspire guests and raise the bar for the beauty shopping experience.”

First Ulta Beauty at Target Store Locations and Online Experience

The Ulta Beauty at Target locations will be found in Target stores across the country, complementing Ulta Beauty’s existing store footprint and making prestige beauty more accessible than ever before. The list of more than 100 locations at launch can be found here Ulta.com/Target, with additional locations to follow in the coming years. Bringing the experience further to life, Ulta Beauty-trained team members will provide guests with industry-leading beauty expertise to guide product discovery and selection. Each “shop-in-shop” will be prominently placed near the existing Target beauty section and will feature specialized displays, discovery zones, as well as on-trend, seasonally relevant offerings.

The immersive experience will also live on Target.com and in the Target app with an elevated look and feel. Guests who shop Ulta Beauty at Target will benefit from rewards from both Target Circle and Ultamate Rewards. Those shopping online will enjoy free shipping for qualifying orders and Target’s industry leading, same-day fulfillment services, Drive Up, Order Pickup and same-day delivery with Shipt at participating store locations.

Forward–Looking Statements
Statements in this release regarding additional Target stores that will include Ulta Beauty at Target are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause the actual results to differ materially from the forward-looking statements. Such risks and uncertainties include the companies’ ability to reach agreement on future store locations and the design and operation of the “shop-in-shops.” In addition, other important risks and uncertainties for Target are described in its public filings with the Securities and Exchange Commission (the SEC), including risk factors contained in its Annual Report on Form 10-K for the fiscal year ended January 30, 2021. Other important risks and uncertainties for Ulta Beauty are detailed in its public filings with the SEC, including risk factors contained in its Annual Report on Form 10–K for the fiscal year ended January 30, 2021. Forward-looking statements speak only as of the date they are made, and neither Target nor Ulta Beauty undertake any obligation to update any forward-looking statement.

About Target

Minneapolis-based Target Corporation (NYSE: TGT) serves guests at more than 1,900 stores and at Target.com. Since 1946, Target has given 5 percent of its profit to communities, which today equals millions of dollars a week. For the latest store count or for more information, visit Target.com/Pressroom. For a behind-the-scenes look at Target, visit Target.com/abullseyeview or follow @TargetNews on Twitter.

About Ulta Beauty
Ulta Beauty (NASDAQ: ULTA) is the largest U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services. Since 1990, the Company has brought together all things beauty, all in one place with more than 25,000 products from approximately 500 well-established and emerging beauty brands across all categories and price points, including Ulta Beauty’s own private label. Ulta Beauty also offers a full-service salon in every store featuring hair, skin, brow, and make-up services. Ulta Beauty operates retail stores across 50 states and also distributes its products through its website, which includes a collection of tips, tutorials and social content. For more information, visit www.ulta.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/target-and-ulta-beauty-announce-brands-and-first-locations-ahead-of-highly-anticipated-august-launch-301338033.html

SOURCE Target Corporation

July 21, 2021 6:03 am

NuZee Bolsters Sales Team with Coffee Industry Veterans Kathleen Schartner and Marie Franklin

PR Newswire

PLANO, Texas, July 21, 2021 /PRNewswire/ — NuZee, Inc. (NASDAQ: NUZE) (“NuZee” or “the Company”), a leading U.S. producer and co-packer of specialty single serve pour-over coffee pouches and tea bag style coffee, announced two new hires to its sales team; Kathleen Schartner, VP of Business Development and Marie Franklin, VP of Sales, North and West Coast.

Kathleen Schartner will be responsible for expanding and distributing NuZee’s product offerings to the hospitality industry, gaming, grocery channel and college & universities. She brings a wealth of expertise in business development and foodservice account management at companies like Nestle and Sani Professional. Most recently, she managed the foodservice sales team at Farmer Brothers, where she led all business development efforts on their private label and branded coffee programs. Kathleen Schartner said, “Hunting for new business is my passion and I am confident that my knowledge in new business development will be an added value to the NuZee sales organization.”

Marie Franklin, VP of Sales, North and West Coast, will be responsible for bringing and selling NuZee’s single service pour over and tea bag style coffee products to roasters on the West Coast and Northern regions of the United States. She comes to NuZee with 25 years of experience in the coffee industry with expertise in many aspects of coffee including importing, roasting, retailing, sales and marketing at brands like Umbria Coffee Roasters, Sustainable Harvest, Portland Coffee Roasters and Seattle’s beloved Torrefazione Italia. “Single-serve solutions are an appreciable part of the coffee market and have become a necessity in the modern roaster’s portfolio. I am looking forward to using the breadth of my experience to help NuZee’s customers achieve their taste goals and move beyond the capsule.”

Keith Wright, VP of Sales, will continue to lead sales for the West Coast and Southern region from California to Texas for NuZee. Mr. Wright, who has been with the company for over two years, said, “NuZee’s eco-friendly single serve coffee formats are great options for coffee drinkers who want authentic tasting cup of coffee without using plastic. I am excited to start working with Kathleen and Marie to introduce these single serve coffee formats to more coffee roasters and hospitality customers in the United States.”

Travis Gorney, Chief Innovation Officer, will continue to focus on business development with new products and programs as well as working on strategic accounts. “Leading innovation is a passion of mine and I am looking forward to bringing new ideas to life for the customer and NuZee,” said Travis Gorney.

“With the addition of Kathleen and Marie to the sales organization, NuZee is well positioned to work to grow its customer base as well as expand distribution channels to reach many more US coffee drinkers,” said Jose Ramirez, Chief Sales and Supply Chain Officer, who also recently joined NuZee. “Together with this new sales team, I am looking forward to changing the way people drink coffee in the United States, one cup at a time.”

Forward-looking Statements

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. NuZee cautions you that such statements are simply predictions and actual events or results may differ materially. These statements reflect NuZee’s current expectations, and NuZee does not undertake to update or revise these forward looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other NuZee statements will not be realized. Further, these statements involve risks and uncertainties, many of which are beyond NuZee’s control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties, many of which are beyond our control, include: NuZee’s plans to obtain funding for its operations, including funding necessary to develop, manufacture and commercialize its products; the impact to NuZee’s business from the COVID-19 global crisis; general market acceptance of and demand for NuZee’s products; and NuZee’s commercialization, marketing and manufacturing capabilities and strategy; for a description of additional factors that may cause NuZee’s actual results, performance or expectations to differ from any forward-looking statements, please review the information set forth in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the NuZee’s public reports and NuZee’s other filings made with the SEC.

About NuZee and Coffee Blenders

NuZee, Inc. (d/b/a Coffee Blenders®) is a specialty coffee company and a leading U.S. single-serve pour-over coffee pouch producer and co-packer. We own sophisticated packing equipment developed in Asia for single serve pour over production. We co-pack single-serve pour-over coffee and tea bag style coffees for customers in the U.S. market and also co-pack for the South Korean market.

View original content to download multimedia:https://www.prnewswire.com/news-releases/nuzee-bolsters-sales-team-with-coffee-industry-veterans-kathleen-schartner-and-marie-franklin-301338169.html

SOURCE NuZee, Inc.

July 21, 2021 6:03 am

KBR Awarded Technology Contract for Two Nitric Acid Plant Expansions for Specialty Fertilizers by Haifa Group in Israel

PR Newswire

HOUSTON, July 21, 2021 /PRNewswire/ — KBR (NYSE: KBR) announced today that it has been awarded a nitric acid technology contract by Haifa Group for two of its process plants at Mishor Rotem, Israel.

Under the terms of the contract, KBR will provide license, basic engineering design and proprietary equipment for both plants, to deliver a capacity increase of approximately 35 percent at each plant.

“We are proud to partner with Haifa Group to increase the production capacity of its plants through the use of our proprietary technology and knowhow,” said Doug Kelly, KBR President, Technology. “KBR has the industry’s leading design for energy-efficient nitric acid production in both mono-pressure and dual-pressure plants, and we look forward to working with Haifa to deliver higher production capacities while lowering plant emissions and operating expenses.”

Motti Levin, Haifa Group CEO, said, “This is a strategic initiative that strengthens Haifa’s position as a leader in the field of precision agriculture. It will contribute to an increase in agricultural yields while helping maintain an ecological balance. The two nitric acid plants are integral to our expansion plan to double our production capacity in the coming years.”

KBR’s Weatherly nitric acid technology, combining years of plant experience with cutting-edge technology innovation, has been successfully employed in 75 plants worldwide since the 1950’s, including approximately 80% of all U.S. plants.

About KBR

We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 29,000 people worldwide with customers in more than 80 countries and operations in 40 countries.

KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.

Visit www.kbr.com

Forward Looking Statement

The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company’s control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the significant adverse impacts on economic and market conditions of the COVID-19 pandemic; the company’s ability to respond to the challenges and business disruption presented by the COVID-19 pandemic; the recent dislocation of the global energy market; the company’s ability to realize cost savings and efficiencies relating to the streamlining of its Energy Solutions business; the company’s ability to manage its liquidity; the company’s ability to continue to generate anticipated levels of revenue, profits and cash flow from operations during the COVID-19 pandemic and any resulting economic downturn; the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company’s indemnities from its former parent; changes in capital spending by the company’s customers, including as a result of the COVID-19 pandemic; the company’s ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company’s ability to control its cost under its contracts; claims negotiations and contract disputes with the company’s customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.

KBR’s most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other U.S. Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

View original content to download multimedia:https://www.prnewswire.com/news-releases/kbr-awarded-technology-contract-for-two-nitric-acid-plant-expansions-for-specialty-fertilizers-by-haifa-group-in-israel-301337899.html

SOURCE KBR, Inc.

July 21, 2021 6:03 am

FirstCash Reports Second Quarter Results; 64 Stores Added YTD, Including 26-Store U.S. Acquisition; Declares $0.30 Quarterly Cash Dividend

FORT WORTH, Texas, July 21, 2021 (GLOBE NEWSWIRE) — FirstCash, Inc. (the “Company”) (Nasdaq: FCFS), the leading international operator of over 2,800 retail pawn stores in the U.S. and Latin America, today announced operating results for the three and six month periods ended June 30, 2021, and an update on the impact of COVID-19 on its business. In addition, the Board of Directors declared a $0.30 per share quarterly cash dividend to be paid in August 2021.

Mr. Rick Wessel, chief executive officer, stated, “FirstCash posted strong second quarter earnings results driven by an accelerating recovery in pawn receivables and the continued strength of retail operations. At this point, Latin American pawn receivable balances have substantially recovered from the impacts of COVID-19 while U.S. pawn loan originations are rapidly approaching normalized levels as we begin the second half of the year.

“Second quarter highlights also include the acquisition of a 26-store chain of high-performing pawn stores in Texas and 12 de novo store openings during the quarter. FirstCash’s store count has now surpassed 2,800 total locations and we believe there are additional growth opportunities ahead. In addition to funding store growth, our strong cash flows and balance sheet returned cash to shareholders through a quarterly cash dividend of $0.30 per share and $38 million in share repurchases during the first half of 2021.”

This release contains adjusted earnings measures, which exclude certain extraordinary and/or non-cash expenses, which are non-GAAP financial measures. Please refer to the descriptions and reconciliations to GAAP of these and other non-GAAP financial measures at the end of this release.

	Three Months Ended June 30,
	As Reported (GAAP)				Adjusted (Non-GAAP)
In thousands, except per share amounts	2021		2020		2021		2020
Revenue	$	389,578	$	412,746	$	389,578	$	412,746
Net income	$	28,427	$	25,873	$	29,038	$	25,872
Diluted earnings per share	$	0.70	$	0.62	$	0.71	$	0.62
EBITDA (non-GAAP measure)	$	56,786	$	53,962	$	57,524	$	53,930
Weighted-average diluted shares	40,802		41,531		40,802		41,531

	Six Months Ended June 30,
	As Reported (GAAP)				Adjusted (Non-GAAP)
In thousands, except per share amounts	2021		2020		2021		2020
Revenue	$	797,517	$	879,236	$	797,517	$	879,236
Net income	$	62,142	$	58,791	$	63,966	$	66,167
Diluted earnings per share	$	1.52	$	1.41	$	1.56	$	1.59
EBITDA (non-GAAP measure)	$	120,741	$	118,586	$	123,125	$	128,536
Weighted-average diluted shares	40,929		41,769		40,929		41,769

Consolidated Earnings Highlights

Diluted earnings per share for the second quarter increased 13% on a GAAP basis and increased 15% on an adjusted non-GAAP basis compared to the prior-year quarter. Year-to-date diluted earnings per share increased 8% on a GAAP basis and decreased 2% on an adjusted non-GAAP basis compared to the prior year.
Operating results in the second quarter reflected increased revenues in Latin America coupled with improved gross margins and lower operating expenses in the U.S., which more than offset the expected revenue decline in the U.S.:
- Pawn loans outstanding at quarter end increased 35% over the prior year and 29% on a constant currency basis. Resulting pawn fees, which typically lag the growth in pawn receivables, increased 8% in total and 2% on a constant currency basis in the second quarter compared to the prior-year quarter.
- Retail sales gross margins of 42% in the second quarter remained at record levels and improved over the 40% gross margins achieved in the second quarter of last year. Despite higher than normal U.S. retail comps a year ago when many competing retailers were shut down due to the pandemic, second quarter merchandise gross profit decreased only 3% compared to the same quarter of 2020.
- Increased inventory turns and margins resulted in a record return on earning assets (trailing twelve months net revenue divided by average pawn receivables and inventories) of 190% as of June 2021 compared to 172% in June of 2020.
- The Company continued to optimize operating expenses which resulted in store level expense reductions of 1% on a U.S. dollar basis and 5% on a constant currency basis versus the prior-year quarter. Administrative expenses were reduced 3% on a dollar reported basis and 6% on a constant currency basis compared to the prior year.
- The adjusted EBITDA margin for the second quarter of 2021 was 15% compared to a 13% margin in the second quarter of 2020.

Acquisitions and Store Opening Highlights

The Company acquired 26 U.S. pawn stores located in the Houston and San Antonio markets of Texas in mid-May. Year-to-date, a total of 28 U.S. stores have been acquired for an aggregate purchase price of approximately $51 million.
A total of 12 de novo locations were opened during the second quarter, which included 10 locations in Mexico, one in Colombia and one in the U.S. A total of 36 stores have been opened year-to-date. In addition, a total of eight locations in Mexico have relocated or expanded thus far in 2021 while another three locations in Mexico have been consolidated with overlapping stores.
With the addition of 64 total stores year-to-date, the Company now operates 2,804 stores, with 1,733 stores located in Latin America and 1,071 stores in the U.S. The Latin American locations include 1,645 stores in Mexico, 60 stores in Guatemala, 15 stores in Colombia and 13 stores in El Salvador.

U.S. Pawn Operations

Pawn receivables were up 29% at June 30, 2021 compared to the prior year while same-store pawn receivables increased 24% at quarter end, reflecting further recovery in pawn balances, especially in the latter half of the quarter. Resulting pawn fees, which typically lag pawn receivables growth, were down only 7% in total for the second quarter, and 9% on a same-store basis, compared to the prior-year quarter.
Retail sales for the second quarter of 2021 were down 17% compared to the prior-year quarter, which was expected given the especially robust retail sales in the second quarter of 2020 when many other U.S. retailers were closed due to the pandemic. On a same store-basis, retail sales declined 19% compared to the prior-year quarter.
Retail margins continued to expand, with second quarter retail margins of 45% compared to 42% in the same quarter last year. The strength in retail margins reflect continued retail demand for value-priced, pre-owned merchandise, increased buying of fresh merchandise from customers and lower levels of aged inventory, all of which limited the need for normal discounting.
Inventories increased 20% on a year-over-year basis, and while not recovered to normalized levels, the inventory turnover rate at 3.1 times for the trailing twelve months ended June 30, 2021 reflects improved retail efficiency. Inventories aged greater than one year as of June 30, 2021 declined further to 1%.
Wholesale scrap jewelry margins improved to 21% in the second quarter of 2021 compared to 12% in the respective prior-year period, as the Company benefited from increased gold prices compared to last year. Despite lower sales volumes, net revenue from non-core scrap jewelry sales increased 30% for the quarter compared to the prior-year quarter as a result of the increased margins.
Store operating expenses decreased 9% in total and 11% on a same-store basis compared to the prior-year quarter, reflecting the continued expense optimization efforts from reduced staffing levels through normal attrition, reduced store hours in some markets and other cost saving initiatives.
The segment pre-tax operating margin improved to 19% for the second quarter of 2021 compared to 18% for the prior-year quarter. On a year-to-date basis, the segment pre-tax operating margin was 21%, a significant improvement over the 19% margin in the respective prior-year period.

Note: Certain growth rates in “Latin America Pawn Operations” below are calculated on a constant currency basis, a non-GAAP financial measure defined at the end of this release. The average Mexican peso to U.S. dollar exchange rate for the three month period ended June 30, 2021 was 20.1 pesos / dollar, a favorable change of 14% versus the comparable prior-year period, and for the six month period ended June 30, 2021 was 20.2 pesos / dollar, a favorable change of 6% versus the prior-year period.

Latin America Pawn Operations

Pawn receivables at June 30, 2021 were up 50% compared to the prior year, and 30% on a constant currency basis, on both a total and same-store basis.
Pawn fees increased 43% in the second quarter, or 24% on a constant currency basis, as compared to the prior-year quarter. On a same-store basis, pawn fees increased 42% on a U.S. dollar basis and 23% on a constant currency basis compared to the prior-year quarter.
Retail sales for the second quarter increased 18%, or 2% on a constant currency basis, compared to the prior-year quarter. Same-store retail sales increased 16% on a U.S. dollar basis and 1% on a constant currency basis compared to the prior-year quarter.
Retail margins continued to strengthen at 37% in the second quarter of 2021 compared to 36% in the second quarter of 2020. As in the U.S., the improved margins reflect fresher inventories and continued demand for popular value-priced consumer electronics. As a result, gross profit from retail sales increased 21% on a U.S. dollar basis, or 4% on a constant currency basis, in the second quarter compared to the prior-year quarter.
Further reflecting the improved retail efficiency, annualized inventory turnover was a near record at 4.4 times for the trailing twelve months ended June 30, 2021 compared to 3.9 turns in the same period last year. Inventories aged greater than one year as of June 30, 2021 declined further to 1%.
Store operating expenses increased 21% on a U.S. dollar basis but only 5% on a constant currency basis while same-store operating expenses increased 19%, or 4% on a constant currency basis, compared to the prior-year quarter. As a reminder, store operating expenses in the prior-year quarter were lower than normal in part due to temporary store closures and restrictions on retail operations in most Latin American markets due to the pandemic.
Segment pre-tax operating income for the second quarter of 2021 increased $7 million, or 36%, ($4 million, or 20% on a constant currency basis) over the prior-year quarter. The resulting segment pre-tax operating margin increased to 20% for the second quarter of 2021 (also 20% on a constant currency basis) compared to 17% in the prior-year quarter.

Liquidity and Shareholder Returns

The Company generated $193 million in cash flow from operations and $77 million in adjusted free cash flow during the trailing twelve months ended June 30, 2021 compared to $269 million of cash flow from operations and $421 million of adjusted free cash flow during the same prior-year period.
During the second quarter, the Company utilized its cash flows and borrowing capacity to fund $62 million in pawn receivable and inventory growth, $48 million in acquisitions and $26 million for capital expenditures (primarily for new stores) and purchases of store real estate.
The Board of Directors declared a $0.30 per share third quarter cash dividend on common shares outstanding, which will be paid on August 27, 2021 to stockholders of record as of August 13, 2021. This represents an annualized dividend of $1.20 per share. Any future dividends are subject to approval by the Company’s Board of Directors.
The Company repurchased 452,000 shares of common stock during the second quarter at an aggregate cost of $33 million and an average cost per share of $73.06. For the six months ended June 30, 2021, the Company repurchased 536,000 shares of common stock at an aggregate cost of $38 million and an average cost per share of $70.87. The Company had $84 million remaining under its current share repurchase authorization at quarter end. Future share repurchases are subject to expected liquidity, acquisition opportunities, debt covenant restrictions and other relevant factors.

2021 Outlook

Given the continued uncertainties related to COVID-19 and, in particular, the associated government assistance programs, the Company is not currently providing earnings guidance. However, the following factors are expected to impact operating trends in 2021:

Impacts of COVID-19:
The extent to which COVID-19 continues to impact the Company’s operations will depend on future developments, which remain uncertain and cannot be predicted with confidence. This uncertainty includes the pace of the economic recovery in the markets in which we serve and the impact of future governmental responses, most notably the monthly advance payment of federal child tax credits that began in mid-July in the U.S.
- Pawn loan origination activity continues to improve, with U.S. same-store new loan volumes thus far in July down only 10% compared to 2019 originations. While U.S. same-store pawn balances are currently up 28% at July 20, 2021 compared to the prior year, they are still down 23% compared to the same date in 2019. Accordingly, same-store pawn fees in the third quarter will continue to be below normalized levels. The Company cannot currently predict the impact, if any, of the monthly advance payments of the federal child tax credit which began in mid-July 2021.
- In Mexico, which comprises the majority of the Company’s Latin American operations and where there have been minimal stimulus programs, same-store pawn loans are currently 34% above prior-year levels and only 4% below this date in 2019.
Income tax rate:
For the full year of 2021, the effective income tax rate, under current tax codes in the U.S. and Latin America, is expected to range from 26.5% to 27.5% compared to 25.8% in 2020.
New store openings:
Through June, the Company has opened 36 new stores and the Company continues to expect 50 to 60 new store openings for the full year 2021.

Additional Commentary and Analysis

Mr. Wessel provided the following additional insights on the Company’s second quarter and year-to-date operating results:

“We are very encouraged by the current trends, most notably the improved lending demand and the continuation of strong retail metrics. Even though revenues are still recovering, we posted year-to-date segment operating profit margins of 20% or more in both the U.S. and Latin America. These first half results, coupled with anticipated further growth in pawn receivables and revenues and continued expense discipline, position us well for earnings growth in the back half of 2021.

“Looking further at the U.S. segment results, as we began the second quarter, loan demand was under pressure with two rounds of stimulus and tax refunds being paid out in the first quarter. The recovery in lending demand we experienced in the second quarter appears to be driven by the further reopening of the economy, waning stimulus programs and consumer price inflation. More importantly, lending originations in the U.S. have continued to improve in July and are now nearing normalized 2019 levels. The major unknown at this point will be the potential impact, if any, of advance payments of the federal child tax credits which began in mid-July. Retail sales remained solid during the quarter and despite the declining impact of stimulus, retail margins through June remained at record levels.

“In Latin America, and Mexico in particular, the impact of COVID-19 on 2020 lending volumes was less severe and recovered more quickly due to limited governmental support programs. Resulting lending activity in the second quarter essentially recovered to pre-pandemic levels and retail results were boosted by improved retail margins. As in the U.S., we have reduced ongoing same-store store operating expenses from 2019 levels in our Latin American markets through a combination of optimized staffing levels and technology initiatives.

“Looking ahead, we expect additional revenue and earnings growth through continued store expansion initiatives. The 28 stores acquired in Texas this year are primarily in rapidly growing markets surrounding Houston and San Antonio. The purchase price for these acquisitions was in line with our historical valuation metrics and we believe that these acquired stores will be immediately accretive to earnings. Coupled with the 36 new, or de novo, stores opened this year, we have added a total of 64 locations year-to-date. Combined with the 137 store additions in 2020, we have now added 201 locations in the past 18 months. We remain on target to open 50 to 60 de novo locations in 2021 and continue to see opportunities for additional acquisitions.

“Finally, we remain committed to further drive shareholder value through our dividend and stock repurchase programs. The quarterly cash dividend was raised to $0.30 per share in the second quarter and the Board again declared a $0.30 cash dividend for the third quarter. We also continued our stock repurchase program in the second quarter with $33 million of total repurchases as we completed the previous $100 million share repurchase program and initiated purchases under the new January 2021 $100 million repurchase program.

“We believe there are significant growth opportunities ahead that will continue to be driven by de novo store openings and strategic acquisitions. Combined with our focus on margin improvements and expense management, we believe that we can further increase earnings and enhance shareholder value,” concluded Mr. Wessel.

About FirstCash

FirstCash is the leading international operator of pawn stores with over 2,800 retail pawn locations and 16,000 employees in 24 U.S. states, the District of Columbia and four countries in Latin America including Mexico, Guatemala, Colombia and El Salvador. FirstCash focuses on serving cash and credit constrained consumers through its retail pawn locations, which buy and sell a wide variety of jewelry, electronics, tools, appliances, sporting goods, musical instruments and other merchandise, and make small consumer pawn loans secured by pledged personal property.

FirstCash is a component company in both the Standard & Poor’s MidCap 400 Index® and the Russell 2000 Index®. FirstCash’s common stock (ticker symbol “FCFS”) is traded on the Nasdaq, the creator of the world’s first electronic stock market. For additional information regarding FirstCash and the services it provides, visit FirstCash’s website located at http://www.firstcash.com.

Forward-Looking Information

This release contains forward-looking statements about the business, financial condition and prospects of FirstCash, Inc. and its wholly owned subsidiaries (together, the “Company”). Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.

While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors may include, without limitation, the risks, uncertainties and regulatory developments: (1) related to the COVID-19 pandemic, including the unknown duration and severity of the COVID-19 pandemic, which may be impacted by variants of the COVID-19 virus and the timing, availability and efficacy of the COVID-19 vaccines in the jurisdictions in which the Company operates, the impact of governmental responses that have been, and may in the future be, imposed in response to the pandemic, including stimulus programs which could adversely impact lending demand and regulations which could adversely affect the Company’s ability to continue to fully operate, potential changes in consumer behavior and shopping patterns which could impact demand for both the Company’s pawn loan and retail products, changes in the economic conditions in the United States and Latin America, which potentially could have an impact on discretionary consumer spending or impact demand for pawn loan products, and currency fluctuations, primarily involving the Mexican peso, and (2) discussed and described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), including the risks described in Part 1, Item 1A, “Risk Factors” thereof, and in the other reports filed subsequently by the Company with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this release speak only as of the date of this release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

FIRSTCASH, INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in thousands, except per share amounts)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Revenue:
Retail merchandise sales	$	265,567		$	287,400		$	537,609		$	584,029
Pawn loan fees	109,909			101,990			225,431			244,105
Wholesale scrap jewelry sales	14,102			22,785			34,477			49,156
Consumer loan and credit services fees	—			571			—			1,946
Total revenue	389,578			412,746			797,517			879,236

Cost of revenue:
Cost of retail merchandise sold	153,424			171,511			310,577			356,206
Cost of wholesale scrap jewelry sold	11,932			18,357			29,129			41,204
Consumer loan and credit services loss provision	—			(223		)	—			(584		)
Total cost of revenue	165,356			189,645			339,706			396,826

Net revenue	224,222			223,101			457,811			482,410

Expenses and other income:
Store operating expenses	139,128			141,051			276,452			294,551
Administrative expenses	27,398			28,386			58,397			61,288
Depreciation and amortization	10,902			10,324			21,514			20,998
Interest expense	7,198			6,974			14,428			15,392
Interest income	(119		)	(525		)	(277		)	(710		)
Merger and acquisition expenses	1,086			134			1,252			202
(Gain) loss on foreign exchange	(577		)	(614		)	(310		)	2,071
Write-off of certain Cash America merger related lease intangibles	401			182			1,279			3,812
Impairment of certain other assets	—			—			—			1,900
Total expenses and other income	185,417			185,912			372,735			399,504

Income before income taxes	38,805			37,189			85,076			82,906

Provision for income taxes	10,378			11,316			22,934			24,115

Net income	$	28,427		$	25,873		$	62,142		$	58,791

Earnings per share:
Basic	$	0.70		$	0.62		$	1.52		$	1.41
Diluted	$	0.70		$	0.62		$	1.52		$	1.41

Weighted-average shares outstanding:
Basic	40,754			41,440			40,893			41,676
Diluted	40,802			41,531			40,929			41,769

Dividends declared per common share	$	0.30		$	0.27		$	0.57		$	0.54

Certain amounts in the consolidated statements of income for the six months ended June 30, 2020 have been reclassified in order to conform to the 2021 presentation.

FIRSTCASH, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)

	June 30,						December 31,
	2021			2020			2020
ASSETS
Cash and cash equivalents	$	50,061		$	70,956		$	65,850
Fees and service charges receivable	40,183			30,418			41,110
Pawn loans	312,166			230,383			308,231
Inventories	216,955			179,967			190,352
Income taxes receivable	7,324			4,988			9,634
Prepaid expenses and other current assets	11,698			10,865			9,388
Total current assets	638,387			527,577			624,565

Property and equipment, net	404,283			341,114			373,667
Operating lease right of use asset	299,223			283,063			298,957
Goodwill	1,017,273			929,575			977,381
Intangible assets, net	83,372			84,389			83,651
Other assets	9,406			9,037			9,818
Deferred tax assets	4,489			7,764			4,158
Total assets	$	2,456,433		$	2,182,519		$	2,372,197

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities	$	103,331		$	69,810		$	81,917
Customer deposits	44,486			35,439			34,719
Income taxes payable	369			13,230			1,148
Lease liability, current	89,027			83,580			88,622
Total current liabilities	237,213			202,059			206,406

Revolving unsecured credit facilities	163,000			200,000			123,000
Senior unsecured notes	493,303			296,923			492,916
Deferred tax liabilities	75,912			67,842			71,173
Lease liability, non-current	196,189			182,915			194,887
Total liabilities	1,165,617			949,739			1,088,382

Stockholders’ equity:
Common stock	493			493			493
Additional paid-in capital	1,219,948			1,226,512			1,221,788
Retained earnings	828,040			763,810			789,303
Accumulated other comprehensive loss	(115,790		)	(172,150		)	(118,432		)
Common stock held in treasury, at cost	(641,875		)	(585,885		)	(609,337		)
Total stockholders’ equity	1,290,816			1,232,780			1,283,815
Total liabilities and stockholders’ equity	$	2,456,433		$	2,182,519		$	2,372,197

Certain amounts in the consolidated balance sheets as of June 30, 2020 have been reclassified in order to conform to the 2021 presentation.

FIRSTCASH, INC.

OPERATING INFORMATION

(UNAUDITED)

The Company’s reportable segments are as follows:

U.S. operations
Latin America operations – includes operations in Mexico, Guatemala, Colombia and El Salvador

The Company provides revenues, cost of revenues, store operating expenses, pre-tax operating income and earning assets by segment. Store operating expenses include salary and benefit expense of store-level employees, occupancy costs, bank charges, security, insurance, utilities, supplies and other costs incurred by the stores.

U.S. Operations Segment Results

The following table details earning assets, which consist of pawn loans and inventories, as well as other earning asset metrics of the U.S. operations segment as of June 30, 2021 as compared to June 30, 2020 (dollars in thousands, except as otherwise noted):

	As of June 30,
	2021			2020			Increase
U.S. Operations Segment
Earning assets:
Pawn loans	$	203,838		$	158,253			29	%
Inventories		144,083			120,408			20	%
	$	347,921		$	278,661			25	%

Average outstanding pawn loan amount (in ones)	$	209		$	190			10	%

Composition of pawn collateral:
General merchandise	35		%	31		%
Jewelry	65		%	69		%
	100		%	100		%

Composition of inventories:
General merchandise	49		%	38		%
Jewelry	51		%	62		%
	100		%	100		%

Percentage of inventory aged greater than one year	1		%	3		%

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)	3.1 times			3.2 times

FIRSTCASH, INC.

OPERATING INFORMATION (CONTINUED)

(UNAUDITED)

The following table presents segment pre-tax operating income and other operating metrics of the U.S. operations segment for the three months ended June 30, 2021 as compared to the three months ended June 30, 2020 (dollars in thousands):

	Three Months Ended
	June 30,
	2021			2020				Decrease
U.S. Operations Segment
Revenue:
Retail merchandise sales	$	173,254		$	208,944				(17	)%
Pawn loan fees		66,942			71,900				(7	)%
Wholesale scrap jewelry sales		6,846			9,557				(28	)%
Consumer loan and credit services fees⁽¹⁾		—			571				(100	)%
Total revenue		247,042			290,972				(15	)%

Cost of revenue:
Cost of retail merchandise sold		95,599			121,661				(21	)%
Cost of wholesale scrap jewelry sold		5,387			8,432				(36	)%
Consumer loan and credit services loss provision ⁽¹⁾		—			(223	)			(100	)%
Total cost of revenue		100,986			129,870				(22	)%

Net revenue		146,056			161,102				(9	)%

Segment expenses:
Store operating expenses		93,574			103,302				(9	)%
Depreciation and amortization		5,347			5,561				(4	)%
Total segment expenses		98,921			108,863				(9	)%

Segment pre-tax operating income	$	47,135		$	52,239				(10	)%

Operating metrics:
Retail merchandise sales margin	45		%	42			%
Wholesale scrap jewelry sales margin	21		%	12			%
Net revenue margin	59		%	55			%
Segment pre-tax operating margin	19		%	18			%

(1) Effective June 30, 2020, the Company no longer offers an unsecured consumer loan product in the U.S.

FIRSTCASH, INC.

OPERATING INFORMATION (CONTINUED)

(UNAUDITED)

The following table presents segment pre-tax operating income and other operating metrics of the U.S. operations segment for the six months ended June 30, 2021 as compared to the six months ended June 30, 2020 (dollars in thousands):

	Six Months Ended
	June 30,
	2021			2020				Decrease
U.S. Operations Segment
Revenue:
Retail merchandise sales	$	363,211		$	404,910				(10	)%
Pawn loan fees		143,339			169,757				(16	)%
Wholesale scrap jewelry sales		16,049			25,035				(36	)%
Consumer loan and credit services fees ⁽¹⁾		—			1,946				(100	)%
Total revenue		522,599			601,648				(13	)%

Cost of revenue:
Cost of retail merchandise sold		202,129			241,190				(16	)%
Cost of wholesale scrap jewelry sold		12,900			22,438				(43	)%
Consumer loan and credit services loss provision ⁽¹⁾		—			(584	)			(100	)%
Total cost of revenue		215,029			263,044				(18	)%

Net revenue		307,570			338,604				(9	)%

Segment expenses:
Store operating expenses		188,821			211,008				(11	)%
Depreciation and amortization		10,729			10,962				(2	)%
Total segment expenses		199,550			221,970				(10	)%

Segment pre-tax operating income	$	108,020		$	116,634				(7	)%

Operating metrics:
Retail merchandise sales margin	44		%	40			%
Wholesale scrap jewelry sales margin	20		%	10			%
Net revenue margin	59		%	56			%
Segment pre-tax operating margin	21		%	19			%

(1) Effective June 30, 2020, the Company no longer offers an unsecured consumer loan product in the U.S.

FIRSTCASH, INC.

OPERATING INFORMATION (CONTINUED)

(UNAUDITED)

Latin America Operations Segment Results

The Company’s management reviews and analyzes certain operating results in Latin America on a constant currency basis because the Company believes this better represents the Company’s underlying business trends. Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates. The wholesale scrap jewelry sales in Latin America are priced and settled in U.S. dollars, and are not affected by foreign currency translation, as are a small percentage of the operating and administrative expenses in Latin America, which are billed and paid in U.S. dollars. Amounts presented on a constant currency basis are denoted as such. See the “Constant Currency Results” section below for additional discussion of constant currency results.

The following table provides exchange rates for the Mexican peso, Guatemalan quetzal and Colombian peso for the current and prior-year periods:

	June 30,
	2021	2020	Favorable
Mexican peso / U.S. dollar exchange rate:
End-of-period	19.8	23.0		14	%
Three months ended	20.1	23.4		14	%
Six months ended	20.2	21.6		6	%

Guatemalan quetzal / U.S. dollar exchange rate:
End-of-period	7.7	7.7		—	%
Three months ended	7.7	7.7		—	%
Six months ended	7.7	7.7		—	%

Colombian peso / U.S. dollar exchange rate:
End-of-period	3,757	3,759		—	%
Three months ended	3,690	3,846		4	%
Six months ended	3,622	3,689		2	%

FIRSTCASH, INC.

OPERATING INFORMATION (CONTINUED)

(UNAUDITED)

The following table details earning assets, which consist of pawn loans and inventories, as well as other earning asset metrics of the Latin America operations segment as of June 30, 2021 as compared to June 30, 2020 (dollars in thousands, except as otherwise noted):

										Constant Currency Basis
										As of
										June 30,
	As of June 30,									2021		Increase
	2021			2020			Increase			(Non-GAAP)		(Non-GAAP)
Latin America Operations Segment
Earning assets:
Pawn loans	$	108,328		$	72,130			50	%	$	94,098		30	%
Inventories		72,872			59,559			22	%	63,300			6	%
	$	181,200		$	131,689			38	%	$	157,398		20	%

Average outstanding pawn loan amount (in ones)	$	80		$	59			36	%	$	69		17	%

Composition of pawn collateral:
General merchandise	67		%	66		%
Jewelry	33		%	34		%
	100		%	100		%

Composition of inventories:
General merchandise	64		%	61		%
Jewelry	36		%	39		%
	100		%	100		%

Percentage of inventory aged greater than one year	1		%	2		%

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)	4.4 times			3.9 times

FIRSTCASH, INC.

OPERATING INFORMATION (CONTINUED)

(UNAUDITED)

The following table presents segment pre-tax operating income and other operating metrics of the Latin America operations segment for the three months ended June 30, 2021 as compared to the three months ended June 30, 2020 (dollars in thousands):

												Constant Currency Basis
												Three Months
												Ended
	Three Months Ended											June 30,			Increase /
	June 30,							Increase /				2021			(Decrease)
	2021				2020			(Decrease)				(Non-GAAP)			(Non-GAAP)
Latin America Operations Segment
Revenue:
Retail merchandise sales	$	92,313			$	78,456			18	%		$	79,905			2	%
Pawn loan fees	42,967				30,090				43	%		37,175				24	%
Wholesale scrap jewelry sales	7,256				13,228				(45	)%		7,256				(45	)%
Total revenue	142,536				121,774				17	%		124,336				2	%

Cost of revenue:
Cost of retail merchandise sold	57,825				49,850				16	%		50,076				—	%
Cost of wholesale scrap jewelry sold	6,545				9,925				(34	)%		5,645				(43	)%
Total cost of revenue	64,370				59,775				8	%		55,721				(7	)%

Net revenue	78,166				61,999				26	%		68,615				11	%

Segment expenses:
Store operating expenses	45,554				37,749				21	%		39,793				5	%
Depreciation and amortization	4,534				3,602				26	%		3,995				11	%
Total segment expenses	50,088				41,351				21	%		43,788				6	%

Segment pre-tax operating income	$	28,078			$	20,648			36	%		$	24,827			20	%

Operating metrics:
Retail merchandise sales margin	37		%	36			%				37			%
Wholesale scrap jewelry sales margin	10		%	25			%				22			%
Net revenue margin	55		%	51			%				55			%
Segment pre-tax operating margin	20		%	17			%				20			%

FIRSTCASH, INC.

OPERATING INFORMATION (CONTINUED)

(UNAUDITED)

The following table presents segment pre-tax operating income and other operating metrics of the Latin America operations segment for the six months ended June 30, 2021 as compared to the six months ended June 30, 2020 (dollars in thousands):

												Constant Currency Basis
												Six Months
												Ended
	Six Months Ended											June 30,			Increase /
	June 30,							Increase /				2021			(Decrease)
	2021				2020			(Decrease)				(Non-GAAP)			(Non-GAAP)
Latin America Operations Segment
Revenue:
Retail merchandise sales	$	174,398			$	179,119			(3	)%		$	163,529			(9	)%
Pawn loan fees	82,092				74,348				10	%		76,951				4	%
Wholesale scrap jewelry sales	18,428				24,121				(24	)%		18,428				(24	)%
Total revenue	274,918				277,588				(1	)%		258,908				(7	)%

Cost of revenue:
Cost of retail merchandise sold	108,448				115,016				(6	)%		101,709				(12	)%
Cost of wholesale scrap jewelry sold	16,229				18,766				(14	)%		15,210				(19	)%
Total cost of revenue	124,677				133,782				(7	)%		116,919				(13	)%

Net revenue	150,241				143,806				4	%		141,989				(1	)%

Segment expenses:
Store operating expenses	87,631				83,543				5	%		82,513				(1	)%
Depreciation and amortization	8,797				7,665				15	%		8,310				8	%
Total segment expenses	96,428				91,208				6	%		90,823				—	%

Segment pre-tax operating income	$	53,813			$	52,598			2	%		$	51,166			(3	)%

Operating metrics:
Retail merchandise sales margin	38		%	36			%				38			%
Wholesale scrap jewelry sales margin	12		%	22			%				17			%
Net revenue margin	55		%	52			%				55			%
Segment pre-tax operating margin	20		%	19			%				20			%

FIRSTCASH, INC.

OPERATING INFORMATION (CONTINUED)

(UNAUDITED)

Consolidated Results of Operations

The following table reconciles pre-tax operating income of the Company’s U.S. operations segment and Latin America operations segment discussed above to consolidated net income (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Consolidated Results of Operations
Segment pre-tax operating income:
U.S. operations	$	47,135		$	52,239		$	108,020		$	116,634
Latin America operations	28,078			20,648			53,813			52,598
Consolidated segment pre-tax operating income	75,213			72,887			161,833			169,232

Corporate expenses and other income:
Administrative expenses	27,398			28,386			58,397			61,288
Depreciation and amortization	1,021			1,161			1,988			2,371
Interest expense	7,198			6,974			14,428			15,392
Interest income	(119		)	(525		)	(277		)	(710		)
Merger and acquisition expenses	1,086			134			1,252			202
(Gain) loss on foreign exchange	(577		)	(614		)	(310		)	2,071
Write-off of certain Cash America merger related lease intangibles	401			182			1,279			3,812
Impairment of certain other assets	—			—			—			1,900
Total corporate expenses and other income	36,408			35,698			76,757			86,326

Income before income taxes	38,805			37,189			85,076			82,906

Provision for income taxes	10,378			11,316			22,934			24,115

Net income	$	28,427		$	25,873		$	62,142		$	58,791

FIRSTCASH, INC.

STORE COUNT ACTIVITY

The following tables detail store count activity:

	Three Months Ended June 30, 2021
	U.S.		Latin America
	Operations Segment		Operations Segment		Total Locations
Total locations, beginning of period	1,046		1,725		2,771
New locations opened	1		11		12
Locations acquired	26		—		26
Consolidation of existing pawn locations⁽¹⁾	(2	)	(3	)	(5	)
Total locations, end of period	1,071		1,733		2,804


	Six Months Ended June 30, 2021
	U.S.		Latin America
	Operations Segment		Operations Segment		Total Locations
Total locations, beginning of period	1,046		1,702		2,748
New locations opened	1		35		36
Locations acquired	28		—		28
Consolidation of existing pawn locations⁽¹⁾	(4	)	(4	)	(8	)
Total locations, end of period	1,071		1,733		2,804

⁽¹⁾ Store consolidations were primarily acquired locations over the past four years which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.

FIRSTCASH, INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

TO GAAP FINANCIAL MEASURES

(UNAUDITED)

The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth. The Company derives these financial calculations on the basis of methodologies other than generally accepted accounting principles (“GAAP”), primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. These financial calculations are “non-GAAP financial measures” as defined under the SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items, other infrequent charges and currency fluctuations. The Company presents these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company’s core operating performance and provide greater transparency into the Company’s results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures of other companies.

While acquisitions are an important part of the Company’s overall strategy, the Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses to allow more accurate comparisons of the financial results to prior periods. In addition, the Company does not consider these merger and acquisition expenses to be related to the organic operations of the acquired businesses or its continuing operations and such expenses are generally not relevant to assessing or estimating the long-term performance of the acquired businesses. Merger and acquisition expenses include incremental costs directly associated with merger and acquisition activities, including professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to the consolidation of technology systems and corporate facilities, among others.

The Company has certain leases in Mexico which are denominated in U.S. dollars. The lease liability of these U.S. dollar denominated leases, which is considered a monetary liability, is remeasured into Mexican pesos using current period exchange rates resulting in the recognition of foreign currency exchange gains or losses. The Company has adjusted the applicable financial measures to exclude these remeasurement gains or losses because they are non-cash, non-operating items that could create volatility in the Company’s consolidated results of operations due to the magnitude of the end of period lease liability being remeasured and to improve comparability of current periods presented with prior periods.

In conjunction with the Cash America merger in 2016, the Company recorded certain lease intangibles related to above or below market lease liabilities of Cash America which are included in the operating lease right of use asset on the consolidated balance sheets. As the Company continues to opportunistically purchase real estate from landlords at certain Cash America stores, the associated lease intangible, if any, is written-off and gain or loss is recognized. The Company has adjusted the applicable financial measures to exclude these gains or losses given the variability in size and timing of these transactions and because they are non-cash, non-operating gains or losses. The Company believes this improves comparability of operating results for current periods presented with prior periods.

FIRSTCASH, INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

TO GAAP FINANCIAL MEASURES (CONTINUED)

(UNAUDITED)

Adjusted Net Income and Adjusted Diluted Earnings Per Share

Management believes the presentation of adjusted net income and adjusted diluted earnings per share provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance and prospects for the future by excluding items that management believes are non-operating in nature and not representative of the Company’s core operating performance of its continuing operations. In addition, management believes the adjustments shown below are useful to investors in order to allow them to compare the Company’s financial results for the current periods presented with the prior periods presented.

The following table provides a reconciliation between net income and diluted earnings per share calculated in accordance with GAAP to adjusted net income and adjusted diluted earnings per share, which are shown net of tax (in thousands, except per share amounts):

	Three Months Ended June 30,											Six Months Ended June 30,
	2021						2020					2021					2020
	In Thousands			Per Share			In Thousands			Per Share		In Thousands			Per Share		In Thousands		Per Share
Net income and diluted earnings per share, as reported	$	28,427		$	0.70		$	25,873		$	0.62	$	62,142		$	1.52	$	58,791	$	1.41
Adjustments, net of tax:
Merger and acquisition expenses	826			0.02			96			—		942			0.02		146		—
Non-cash foreign currency (gain) loss related to lease liability	(524		)	(0.02		)	(308		)	—		(103		)	—		2,761		0.07
Non-cash write-off of certain Cash America merger related lease intangibles	309			0.01			140			—		985			0.02		2,935		0.07
Non-cash impairment of certain other assets ⁽¹⁾	—			—			—			—		—			—		1,463		0.04
Consumer lending wind-down costs and asset impairments	—			—			71			—		—			—		71		—
Adjusted net income and diluted earnings per share	$	29,038		$	0.71		$	25,872		$	0.62	$	63,966		$	1.56	$	66,167	$	1.59

⁽¹⁾ Impairment related to a non-operating asset in which the Company determined that an other than temporary impairment existed as of March 31, 2020.

FIRSTCASH, INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

TO GAAP FINANCIAL MEASURES (CONTINUED)

(UNAUDITED)

The following tables provide a reconciliation of the gross amounts, the impact of income taxes and the net amounts for the adjustments included in the table above (in thousands):

	Three Months Ended June 30,
	2021									2020
	Pre-tax			Tax			After-tax			Pre-tax			Tax			After-tax
Merger and acquisition expenses	$	1,086		$	260		$	826		$	134		$	38		$	96
Non-cash foreign currency gain related to lease liability	(749		)	(225		)	(524		)	(440		)	(132		)	(308		)
Non-cash write-off of certain Cash America merger related lease intangibles	401			92			309			182			42			140
Consumer lending wind-down costs and asset impairments	—			—			—			92			21			71
Total adjustments	$	738		$	127		$	611		$	(32	)	$	(31	)	$	(1	)


	Six Months Ended June 30,
	2021									2020
	Pre-tax			Tax			After-tax			Pre-tax			Tax			After-tax
Merger and acquisition expenses	$	1,252		$	310		$	942		$	202		$	56		$	146
Non-cash foreign currency (gain) loss related to lease liability	(147		)	(44		)	(103		)	3,944			1,183			2,761
Non-cash write-off of certain Cash America merger related lease intangibles	1,279			294			985			3,812			877			2,935
Non-cash impairment of certain other assets	—			—			—			1,900			437			1,463
Consumer lending wind-down costs and asset impairments	—			—			—			92			21			71
Total adjustments	$	2,384		$	560		$	1,824		$	9,950		$	2,574		$	7,376

FIRSTCASH, INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

TO GAAP FINANCIAL MEASURES (CONTINUED)

(UNAUDITED)

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

The Company defines EBITDA as net income before income taxes, depreciation and amortization, interest expense and interest income and adjusted EBITDA as EBITDA adjusted for certain items as listed below that management considers to be non-operating in nature and not representative of its actual operating performance. The Company believes EBITDA and adjusted EBITDA are commonly used by investors to assess a company’s financial performance, and adjusted EBITDA is used in the calculation of the net debt ratio as defined in the Company’s senior unsecured notes covenants. The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA (dollars in thousands):

													Trailing Twelve
	Three Months Ended						Six Months Ended						Months Ended
	June 30,						June 30,						June 30,
	2021			2020			2021			2020			2021				2020
Net income	$	28,427		$	25,873		$	62,142		$	58,791		$	109,930			$	147,706
Income taxes		10,378			11,316			22,934			24,115			35,939				55,682
Depreciation and amortization		10,902			10,324			21,514			20,998			42,621				42,518
Interest expense		7,198			6,974			14,428			15,392			28,380				32,509
Interest income		(119	)		(525	)		(277	)		(710	)		(1,107	)			(1,406	)
EBITDA		56,786			53,962			120,741			118,586			215,763				277,009
Adjustments:
Merger and acquisition expenses		1,086			134			1,252			202			2,366				1,263
Non-cash foreign currency (gain) loss related to lease liability		(749	)		(440	)		(147	)		3,944			(2,842	)			3,546
Loss on extinguishment of debt		—			—			—			—			11,737				—
Non-cash write-off of certain Cash America merger related lease intangibles		401			182			1,279			3,812			4,522				3,812
Non-cash impairment of certain other assets		—			—			—			1,900			—				1,900
Consumer lending wind-down costs and asset impairments		—			92			—			92			17				1,002
Adjusted EBITDA	$	57,524		$	53,930		$	123,125		$	128,536		$	231,563			$	288,532

Net debt ratio calculation:
Total debt (outstanding principal)													$	663,000			$	500,000
Less: cash and cash equivalents														(50,061	)			(70,956	)
Net debt													$	612,939			$	429,044
Adjusted EBITDA													$	231,563			$	288,532
Net debt ratio (net debt divided by adjusted EBITDA)													2.6			:1	1.5			:1

FIRSTCASH, INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

TO GAAP FINANCIAL MEASURES (CONTINUED)

(UNAUDITED)

Free Cash Flow and Adjusted Free Cash Flow

For purposes of its internal liquidity assessments, the Company considers free cash flow and adjusted free cash flow. The Company defines free cash flow as cash flow from operating activities less purchases of furniture, fixtures, equipment and improvements and net fundings/repayments of loan receivables, which are considered to be operating in nature by the Company but are included in cash flow from investing activities. Adjusted free cash flow is defined as free cash flow adjusted for merger and acquisition expenses paid that management considers to be non-operating in nature.

Free cash flow and adjusted free cash flow are commonly used by investors as an additional measure of cash generated by business operations that may be used to repay scheduled debt maturities and debt service or, following payment of such debt obligations and other non-discretionary items, may be available to invest in future growth through new business development activities or acquisitions, repurchase stock, pay cash dividends or repay debt obligations prior to their maturities. These metrics can also be used to evaluate the Company’s ability to generate cash flow from business operations and the impact that this cash flow has on the Company’s liquidity. However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other income statement data prepared in accordance with GAAP. The following table reconciles cash flow from operating activities to free cash flow and adjusted free cash flow (in thousands):

													Trailing Twelve
	Three Months Ended						Six Months Ended						Months Ended
	June 30,						June 30,						June 30,
	2021			2020			2021			2020			2021			2020
Cash flow from operating activities	$	44,575		$	65,914		$	113,749		$	143,299		$	192,714		$	268,922
Cash flow from investing activities:
Loan receivables, net ⁽¹⁾	(50,886		)	126,000			(8,492		)	178,279			(79,763		)	193,111
Purchases of furniture, fixtures, equipment and improvements	(11,534		)	(9,895		)	(21,025		)	(20,476		)	(38,092		)	(41,883		)
Free cash flow	(17,845		)	182,019			84,232			301,102			74,859			420,150
Merger and acquisition expenses paid, net of tax benefit	826			96			942			146			1,787			892
Adjusted free cash flow	$	(17,019	)	$	182,115		$	85,174		$	301,248		$	76,646		$	421,042

⁽¹⁾ Includes the funding of new loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral.

FIRSTCASH, INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

TO GAAP FINANCIAL MEASURES (CONTINUED)

(UNAUDITED)

Constant Currency Results

The Company’s reporting currency is the U.S. dollar. However, certain performance metrics discussed in this release are presented on a “constant currency” basis, which is considered a non-GAAP financial measure. The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America, which are primarily transacted in local currencies.

The Company believes constant currency results provide valuable supplemental information regarding the underlying performance of its business operations in Latin America, consistent with how the Company’s management evaluates such performance and operating results. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of evaluating period-over-period comparisons. Business operations in Mexico, Guatemala and Colombia are transacted in Mexican pesos, Guatemalan quetzales and Colombian pesos. The Company also has operations in El Salvador where the reporting and functional currency is the U.S. dollar. See the Latin America operations segment tables elsewhere in this release for an additional reconciliation of certain constant currency amounts to as reported GAAP amounts.

For further information, please contact:
Gar Jackson
Global IR Group
Phone: (817) 886-6998
Email: [email protected]

Doug Orr, Executive Vice President and Chief Financial Officer
Phone: (817) 258-2650
Email: [email protected]
Website: investors.firstcash.com

July 21, 2021 6:03 am

Amplify ETFs Launches the Amplify Thematic All-Stars ETF (NYSE: MVPS)

Core Thematic ETF Selects & Weights Stocks Via Thematic ETF Ownership Data

CHICAGO, July 21, 2021 (GLOBE NEWSWIRE) — Amplify ETFs announces the launch of the Amplify Thematic All-Stars ETF (NYSE: MVPS), a core thematic ETF that invests in the themes and stocks considered the purest and most attractive as determined by U.S. ETF ownership data. MVPS seeks investment results that generally correspond to the ETF All-Stars Thematic Composite Index (the “Index”), which is powered by ETF Action, a technology and research firm.

MVPS is a first-of-its-kind core thematic ETF driven by Thematic ETF market capitalization data and the consensus underlying stocks that comprise each theme. This data analysis produces an index-based portfolio reflective of what one of the most sophisticated and progressive groups of investors in the world – ETF investors – believes are the appropriate weights for individual ETF themes and the stocks that power them.

“The proliferation of thematic ETFs has left investors with a series of questions,” said Christian Magoon, CEO of Amplify ETFs. “Which themes should I own? How much should I allocate to each theme? How do I focus on consensus pure play stocks representing a theme? When should I rebalance my exposure? MVPS helps address these questions and provides a convenient solution for investors who want to own themes without the hands-on research needed to identify thematic opportunities.”

“The ETF All-Stars Thematic Composite Index is the first-ever strategy to leverage the growth and transparency of thematic ETFs to establish a consensus view on which companies best align with innovative trends across the world economy,” said Mike Akins, CEO & Founding Partner of ETF Action. “We are thrilled to partner with Amplify, a clear leader in the thematic ETF space, to make this strategy available to investors.”

The Thematic All-Stars universe includes all ETFs meeting ETF Action’s proprietary classification requirements within the following thematic segments:

Disruptive Technology
Evolving Consumer
FinTech
Health Care Innovation
Industrial Revolution
Sustainability
Multi-Theme

Investors can learn more about MVPS at AmplifyETFs.com/MVPS.

About Amplify ETFs

Amplify ETFs, sponsored by Amplify Investments, has over $4.6 billion in assets across its suite of ETFs (as of 6/30/2021). Amplify believes the ETF structure empowers investors through efficiency, transparency and flexibility. Amplify ETFs deliver expanded investment opportunities for investors seeking growth, income and risk-managed strategies.

About ETF Action

ETF Action is a financial technology and research company offering institutional-level data, industry leading tools, actionable insights, engaging model portfolios and differentiated index strategies designed to empower investment professionals. With the core premise of viewing Markets Through the Lens of ETFs™, ETF Action harnesses the growth and unparalleled transparency of ETFs to democratize market research via its user-friendly SaaS platform.

Contacts

Sales Contact:
Amplify ETFs
855-267-3837
[email protected]

Media Contact:
Gregory FCA for Amplify ETFs
Kerry Davis
610-228-2098
[email protected]

Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in Amplify Funds statutory and summary prospectus, which may be obtained above or by calling 855-267-3837, or by visiting AmplifyETFs.com. Read the prospectus carefully before investing.

Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. The Fund is not actively managed. The Fund invests in securities included in its Index regardless of their investment merit.

The Fund is susceptible to potential operational risks through breaches in cybersecurity. Small and/or mid-capitalization companies may be more vulnerable to adverse general market or economic developments, and their securities may be less liquid and may experience greater price volatility than larger, more established companies as a result of several factors, including limited trading volumes, products or financial resources, management inexperience and less publicly available information. Accordingly, such companies are generally subject to greater market risk than larger, more established companies. Securities issued by non-U.S. companies present risks beyond those of securities of U.S. issuers.

The ETF All-Stars Thematic Composite Index seeks to provide access to a diversified basket of global companies (“Thematic ETF All-Stars”) most widely owned by ETFs included in the Index Provider’s qualifying thematic universe. The thematic universe includes all ETFs that meet the Index Provider’s proprietary classification requirements, which are designed to identify ETFs with strategies seeking to capture investment opportunities in one of the following thematic segments: disruptive technology, evolving consumer, fin-tech, health care innovation, industrial revolution, sustainability, and multi-theme. The Fund seeks to have a tracking error of less than 5% in relation to its index. However, there is no guarantee the tracking error will not exceed 5%.

Amplify Investments LLC serves as the Investment Adviser and Toroso Investments, LLC serves as Sub-Adviser to the Fund.

Amplify ETFs are distributed by Foreside Fund Services, LLC.

July 21, 2021 6:03 am

Kevin Manion Joins NewAge as Chief Financial Officer

DENVER, July 21, 2021 (GLOBE NEWSWIRE) — NewAge, Inc. (Nasdaq: NBEV), the Colorado-based D2C (direct-to-consumer) organic and healthy products company, today announced that Kevin Manion has joined NewAge, Inc. as its new Chief Financial Officer.

Brent Willis, Chief Executive Officer of NewAge commented, “We are thrilled to have someone of Kevin’s background and tremendous track record of experience join our cause at NewAge. As we have evolved, we have continued to strengthen the management team and our organizational capabilities, and Kevin is a perfect embodiment of that evolution. Kevin will be an incredible addition to our global operations as we scale NewAge to the next level.”

Kevin began his career at Arthur Andersen and spent five years in the audit, tax and consulting group focusing on privately held and venture-backed businesses. He then spent the next five years at Kraft Heinz as a Controller of one of their divisions and then at Nestle USA as the Chief Financial Officer for the Pet Food, Ice Cream and Water businesses. Following Nestle, he worked for many private equity-backed companies, resulting in numerous highly successful exits, and then became CFO and General Counsel for Bolthouse Farms, which he later sold to Campbells for $1.55 Billion. Following its successful sale, he became Chief Financial and Operations Officer for Young’s Market Company, a $3 Billion Beverage Distribution Company, and also held several Board roles for consumer goods companies before joining Calavo Growers (CVGW), a $1.3 Billion fresh food company as their Chief Financial Officer where he was most recently before joining NewAge.

Kevin attended The University of Notre Dame and graduated with a Bachelor’s of Business Administration Degree. In his new role, he will be leading all the corporate finance, financial planning & analysis, budgeting and reporting aspects of the firm, in addition to tax, treasury, risk management and investor relations. He is a CPA (inactive), Certified Production and Inventory Control Manager (CPIM), Certified Treasury Professional, Certified in Investor Relations by NIRI and certified as a board member by the National Association of Corporate Directors.

“I am very excited to be joining NewAge at this important inflection point in the business,” commented Kevin Manion. “NewAge’s healthy products deliver direct-to-consumer has the opportunity to be a leading and disruptive model versus legacy consumer goods industry leaders. This is a business that is undervalued, and I look forward to partnering with Brent to realize the full potential of the business and deliver significant value creation for shareholders as a result.”

About NewAge, Inc.
NewAge is a purpose-driven firm dedicated to inspiring the planet to Live Healthy™. Colorado-based NewAge commercializes a portfolio of organic and healthy products worldwide through primarily a direct to consumer (D2C) route to market distribution system across more than 75 countries. The company competes in three major category platforms including health and wellness, inner and outer beauty, and nutritional performance and weight management — leading a network of more than 400,000 exclusive independent Brand Partners around the world.

The company operates the websites NewAge.com, NoniNewAge.com, ARIIX.com, MaVie.com, TheLIMUCompany.com and Zennoa.com.

Safe Harbor Disclosure
This press release contains forward-looking statements that are made under the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are any statement reflecting management’s expectations regarding future results of operations, economic performance, and financial condition. The forward-looking statements are based on the assumption that operating performance and results will continue in line with historical results. Management believes these assumptions to be reasonable, but there is no assurance they will prove to be accurate. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. NewAge competes in a rapidly growing and transforming industry, and risk factors, including those disclosed in the Company’s filings with the Securities and Exchange Commission, might affect the Company’s operations. Unless required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements.

For investor inquiries about NewAge please contact:

NewAge Investor & Public Relations:

Mindy Eardley
Director, Public and Investor Relations
Tel: 1-801-573-4818
[email protected]

NewAge Investor Relations

BPC Financial Marketing
800 816 7361
[email protected]

July 21, 2021 6:03 am

Anthem Reports Second Quarter 2021 Results, Raises Full Year Outlook

Anthem Reports Second Quarter 2021 Results, Raises Full Year Outlook

Second quarter GAAP net income was $7.25 per share, including net positive adjustment items of $0.22 per share. Adjusted net income was $7.03* per share.
Operating revenue grew by 14.1% over the prior quarter to $33.3 billion, or 15.8% adjusted for the repeal of the health insurance tax.
Medical enrollment increased by 1.9 million members year over year and 820 thousand members in the second quarter to 44.3 million members.
Third quarter 2021 dividend of $1.13 per share declared to shareholders.
Raising full year adjusted net income outlook from greater than $25.10* per share to greater than $25.50* per share.

INDIANAPOLIS–(BUSINESS WIRE)–
Anthem, Inc. (NYSE: ANTM) reported second quarter 2021 results reflecting strong financial performance.

“We continued to deliver on our commitments to our stakeholders while making considerable progress against our long-term strategy during the second quarter, all while navigating an uncertain environment due to the pandemic,” said Gail Boudreaux, President and CEO. “Our continued success is a function of our relentless focus on the needs of our clients and customers and an unwavering commitment to improve the health of humanity, starting with our members, their communities and our own associates.”

*Refer to GAAP reconciliation tables.

CONSOLIDATED HIGHLIGHTS

Earnings Per Share: GAAP net income was $7.25 per share in the second quarter, including net positive adjustment items of $0.22 per share. Adjusted net income was $7.03* per share.

*Please refer to the GAAP reconciliation tables.

Membership: Medical enrollment totaled approximately 44.3 million members at June 30, 2021, an increase of 1.9 million lives, or 4.4 percent from the prior year quarter. Government Business enrollment increased by 2.1 million lives compared to the prior year quarter, driven by Medicaid, reflecting organic growth, aided by the temporary suspension of eligibility recertification efforts in our markets, and growth in Medicare Advantage. In addition, the acquisition of MMM during the second quarter added 315 thousand Medicaid members and 273 thousand Medicare Advantage members. Commercial & Specialty Business enrollment decreased by 174 thousand lives compared to the prior year quarter primarily attributable to in-group attrition in the group fee-based business as a result of the economic environment, partially offset by growth in our risk-based businesses.

During the second quarter of 2021, medical enrollment increased sequentially by 820 thousand lives, primarily driven by the acquisition of MMM, organic growth in the Medicaid business, higher BlueCard activity, and sales in excess of lapses in our Commercial risk-based businesses, partially offset by higher in-group attrition in the group fee-based business.

Operating Revenue: Operating revenue was $33.3 billion in the second quarter of 2021, an increase of $4.1 billion, or 14.1 percent, versus the prior year quarter and 15.8 percent after adjusting for the repeal of the health insurance tax in 2021. The increase was driven by higher premium revenue due to growth in Medicaid and Medicare and, to a lesser extent, rate increases to cover overall cost trend.The increase was further attributable to growth in pharmacy product revenue related to IngenioRx, partially offset by the repeal of the health insurance tax.

Benefit Expense Ratio:The benefit expense ratio was 86.8 percent in the second quarter of 2021, an increase of 890 basis points versus the prior year quarter and an increase of 750 basis points after adjusting for the repeal of the health insurance tax in 2021. The increase was driven by an increase in non-COVID and COVID-related healthcare costs as compared to relatively depressed levels in the same quarter a year ago.

Medical claims reserves established at December 31, 2020 developed better than the Company’s expectations during the second quarter of 2021.

Days in Claims Payable:Days in Claims Payable was 48.1 days as of June 30, 2021, an increase of 1.2 days from March 31, 2021 and an increase of 2.1 days as compared to June 30, 2020. The acquisitions of MMM and myNEXUS increased Days in Claims Payable by 1.6 days sequentially.

SG&A Expense Ratio: The SG&A expense ratio was 11.5 percent in the second quarter of 2021, a decrease of 240 basis points from 13.9 percent in the second quarter of 2020, primarily driven by growth in operating revenue and the repeal of the health insurance tax in 2021, partially offset by increased spend to support growth.

Operating Cash Flow: Operating cash flow was $1.7 billion, or 0.9 times net income in the second quarter of 2021, a decrease of $3.8 billion when compared year-over-year. The year-on-year decrease was driven by tax payments made during the second quarter that were deferred out of the same period in the prior year, as was permitted by the IRS, in addition to the negative impact of the repeal of the health insurance tax in 2021 on second quarter revenues.

Share Repurchase Program: During the second quarter of 2021, the Company repurchased 1.3 million shares of its common stock for $480 million, at a weighted average price of $380.59. As of June 30, 2021, the Company had approximately $5.2 billion of Board-approved share repurchase authorization remaining.

Cash Dividend:During the second quarter of 2021, the Company paid a quarterly dividend of $1.13 per share, representing a distribution of cash totaling $278 million.

On July 20, 2021, the Audit Committee declared a third quarter 2021 dividend to shareholders of $1.13 per share. On an annualized basis, this equates to a dividend of $4.52 per share. The third quarter dividend is payable on September 24, 2021 to shareholders of record at the close of business on September 10, 2021.

Investment Portfolio & Capital Position:During the second quarter of 2021, the Company recorded net realized gains of $172 million. During the second quarter of 2020, the Company recorded net realized gains of $29 million. These amounts are excluded from adjusted earnings per share.

As of June 30, 2021, the Company’s net unrealized gain position in the investment portfolio was $1.0 billion, consisting primarily of fixed maturity securities. As of June 30, 2021 cash and investments at the parent company totaled approximately $980 million.

REPORTABLE SEGMENTS

Anthem, Inc. has four reportable segments: Commercial & Specialty Business (comprised of Individual, Group risk-based, Group fee-based, and BlueCard businesses); Government Business (comprised of the Medicaid, Medicare, and Federal Health Products & Services businesses); IngenioRx, and Other (comprised of the Diversified Business Group and corporate expenses not allocated to our other reportable segments).

Anthem, Inc.

Reportable Segment Highlights

(Unaudited)

(In millions)

Three Months Ended June 30

Six Months Ended June 30

2021

2020

Change

2021

2020

Change

Operating Revenue

Commercial & Specialty Business

$9,550

$8,789

8.7

%

$19,041

$18,150

4.9

%

Government Business

20,066

17,242

16.4

%

39,349

34,708

13.4

%

IngenioRx

6,219

5,269

18.0

%

12,081

10,466

15.4

%

Other

2,517

1,452

73.3

%

4,887

2,479

97.1

%

Eliminations

(5,073)

(3,574)

41.9

%

(9,981)

(7,177)

39.1

%

Total Operating Revenue¹

$33,279

$29,178

14.1

%

$65,377

$58,626

11.5

%

Operating Gain (Loss)

Commercial & Specialty Business

$791

$1,372

(42.3)

%

$2,059

$2,792

(26.3)

%

Government Business

868

1,618

(46.4)

%

1,346

2,029

(33.7)

%

IngenioRx

405

304

33.2

%

812

653

24.3

%

Other

17

66

(74.2)

%

25

80

(68.8)

%

Total Operating Gain¹

$2,081

$3,360

(38.1)

%

$4,242

$5,554

(23.6)

%

Operating Margin

8.3

%

15.6

%

(730) bp

10.8

%

15.4

%

(460) bp

4.3

%

9.4

%

(510) bp

3.4

%

5.8

%

(240) bp

6.5

%

5.8

%

70 bp

6.7

%

6.2

%

50 bp

Total Operating Margin¹

6.3

%

11.5

%

(520) bp

6.5

%

9.5

%

(300) bp

(1)

See “Basis of Presentation.”

(2)

“NM” = calculation not meaningful.

Commercial & Specialty Business: Operating gain in the Commercial & Specialty Business segment totaled $791 million in the second quarter of 2021, a decrease of $581 million from an operating gain of $1,372 million in the second quarter of 2020. The decrease was primarily attributable to an increase in non-COVID related utilization as compared to relatively depressed levels in the prior year quarter, costs associated with COVID-19 including vaccine administration and testing, as well as investments to support growth. The decrease was partially offset by the non-recurring premium credits provided to members enrolled in select employer group and Individual health plans in the second quarter of 2020, as well as growth in our risk-based membership.

Government Business: Operating gain in the Government Business segment was $868 million in the second quarter of 2021, a decrease of $750 million from $1,618 million in the second quarter of 2020. The decrease was primarily attributable to an increase in non-COVID related utilization as compared to relatively depressed levels in the prior year quarter and costs associated with COVID-19. The decrease was partially offset by membership growth in the Medicaid and Medicare businesses.

IngenioRx: Operating gain was $405 million in the second quarter of 2021, an increase of $101 million, or 33.2 percent, from $304 million in the second quarter of 2020. The increase was driven by growth in integrated medical and pharmacy membership.

Other: The Company reported an operating gain of $17 million in the Other segment for the second quarter of 2021, compared with an operating gain of $66 million in the prior year quarter. The decrease was driven by an increase in non-COVID utilization impacting the risk-sharing arrangements within the Diversified Business Group, as utilization was depressed in the second quarter of 2020. This decrease was partially offset by a decline in unallocated corporate expenses.

OUTLOOK

Full Year 2021:

GAAP net income is now expected to be greater than $24.89 per share, including approximately $0.61 per share of net unfavorable items. Excluding these items, adjusted net income is expected to be greater than $25.50* per share.

Medical membership is now expected to be in the range of 44.8 – 45.3 million. Risk-based membership is now expected to be in the range of 19.3 – 19.6 million. Fee-based membership is expected to be in the range of 25.5 – 25.7 million.

Operating revenue is now expected to be approximately $137.1 billion, including premium revenue of $116.5 billion – $117.5 billion.

Operating cash flow is now expected to be greater than $5.8 billion.

Investment income is now expected to be approximately $1.1 billion.

Effective tax rate is now expected to be between 22.0 – 24.0%

* Refer to the GAAP reconciliation tables.

Basis of Presentation

Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reporting segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and selling, general and administrative expense. It does not include net investment income, net realized gains/losses on financial instruments, interest expense, amortization of other intangible assets, gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Refer to the GAAP reconciliation tables.

Operating margin is defined as operating gain divided by operating revenue.

Conference Call and Webcast

Management will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time (“EDT”) to discuss the company’s second quarter results and outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers:

888-947-9963 (Domestic)

800-813-5529 (Domestic Replay)

312-470-0178 (International)

203-369-3826 (International Replay)

The access code for today’s conference call is 8339667. The replay will be available from 11:30 a.m. EDT today, until the end of the day on August 20, 2021. The call will also be available through a live webcast at www.antheminc.com under the “Investors” link. A webcast replay will be available following the call.

About Anthem, Inc.

Anthem is a leading health benefits company dedicated to improving lives and communities, and making healthcare simpler. Through its affiliated companies, Anthem serves more than 117 million people, including more than 44 million within its family of health plans. We aim to be the most innovative, valuable and inclusive partner. For more information, please visit www.antheminc.com or follow @AnthemInc on Twitter.

Anthem, Inc.

Membership Summary

(Unaudited and in Thousands)

Change from

Medical Membership

June 30,

2021

June 30,

2020

March 31,

2021

June 30,

2020

March 31,

2021

Commercial & Specialty Business

Individual

738

711

731

3.8

%

1.0

%

Group Risk-Based

3,851

3,789

3,837

1.6

%

0.4

%

Commercial Risk-Based

4,589

4,500

4,568

2.0

%

0.5

%

BlueCard^®

6,235

6,171

6,166

1.0

%

1.1

%

Group Fee-Based

19,372

19,699

19,515

(1.7)

%

(0.7)

%

Commercial Fee-Based

25,607

25,870

25,681

(1.0)

%

(0.3)

%

Total Commercial & Specialty Business

30,196

30,370

30,249

(0.6)

%

(0.2)

%

Government Business

Medicare Advantage

1,824

1,366

1,538

33.5

%

18.6

%

Medicare Supplement

936

921

930

1.6

%

0.6

%

Total Medicare

2,760

2,287

2,468

20.7

%

11.8

%

Medicaid

9,754

8,180

9,172

19.2

%

6.3

%

Federal Employees Health Benefits

1,631

1,616

1,632

0.9

%

(0.1)

%

Total Government Business

14,145

12,083

13,272

17.1

%

6.6

%

Total Medical Membership

44,341

42,453

43,521

4.4

%

1.9

%

Other Membership

Life and Disability Members

4,732

5,110

4,766

(7.4)

%

(0.7)

%

Dental Members

6,606

6,400

6,599

3.2

%

0.1

%

Dental Administration Members

1,497

1,318

1,488

13.6

%

0.6

%

Vision Members

7,819

7,457

7,798

4.9

%

0.3

%

Medicare Part D Standalone Members

433

392

450

10.5

%

(3.8)

%

Anthem, Inc.

Consolidated Statements of Income

(Unaudited)

(In millions, except per share data)

Three Months Ended

June 30

2021

2020

Change

Revenues

Premiums

$

28,533

$

25,092

13.7

%

Product revenue

3,042

2,543

19.6

%

Administrative fees and other revenue

1,704

1,543

10.4

%

Total operating revenue

33,279

29,178

14.1

%

Net investment income

400

57

601.8

%

Net realized gains on financial instruments

172

29

493.1

%

Total revenues

33,851

29,264

15.7

%

Expenses

Benefit expense

24,763

19,547

26.7

%

Cost of products sold

2,614

2,225

17.5

%

Selling, general and administrative expense

3,821

4,046

(5.6)

%

Interest expense

205

201

2.0

%

Amortization of other intangible assets

90

93

(3.2)

%

Loss on extinguishment of debt

5

3

66.7

%

Total expenses

31,498

26,115

20.6

%

Income before income tax expense

2,353

3,149

(25.3)

%

Income tax expense

552

873

(36.8)

%

Net income

1,801

2,276

(20.9)

%

Net income attributable to noncontrolling interests

(8)

—

NM

Shareholders’ net income

$

1,793

$

2,276

(21.2)

%

Shareholders’ net income per diluted share

$

7.25

$

8.91

(18.6)

%

Diluted shares

247.4

255.4

(3.1)

%

Benefit expense as a percentage of premiums

86.8

%

77.9

%

890

bp

Selling, general and administrative expense as a percentage of total operating revenue

11.5

%

13.9

%

(240)

bp

Income before income taxes as a percentage of total revenue

7.0

%

10.8

%

(380)

bp

“NM” = calculation not meaningful

Anthem, Inc.

Consolidated Statements of Income

(Unaudited)

(In millions, except per share data)

Six Months Ended

June 30

2021

2020

Change

Revenues

Premiums

$

56,209

$

50,609

11.1

%

Product revenue

5,779

4,887

18.3

%

Administrative fees and other revenue

3,389

3,130

8.3

%

Total operating revenue

65,377

58,626

11.5

%

Net investment income

691

311

122.2

%

Net realized gains (losses) on financial instruments

168

(52)

NM

Total revenues

66,236

58,885

12.5

%

Expenses

Benefit expense

48,462

41,036

18.1

%

Cost of products sold

4,927

4,209

17.1

%

Selling, general and administrative expense

7,746

7,827

(1.0)

%

Interest expense

397

395

0.5

%

Amortization of other intangible assets

170

176

(3.4)

%

Loss on extinguishment of debt

5

4

25.0

%

Total expenses

61,707

53,647

15.0

%

Income before income tax expense

4,529

5,238

(13.5)

%

Income tax expense

1,061

1,439

(26.3)

%

Net income

3,468

3,799

(8.7)

%

Net income attributable to noncontrolling interests

(10)

—

NM

Shareholders’ net income

$

3,458

$

3,799

(9.0)

%

Shareholders’ net income per diluted share

$

13.95

$

14.85

(6.1)

%

Diluted shares

247.8

255.9

(3.2)

%

Benefit expense as a percentage of premiums

86.2

%

81.1

%

510

bp

Selling, general and administrative expense as a percentage of total operating revenue

11.8

%

13.4

%

(160)

bp

Income before income taxes as a percentage of total revenue

6.8

%

8.9

%

(210)

bp

“NM” = calculation not meaningful

Anthem, Inc.

Consolidated Balance Sheets

(In millions)

June 30,

2021

December 31,

2020

Assets

(Unaudited)

Current assets:

Cash and cash equivalents

$

5,258

$

5,741

Fixed maturity securities

25,848

23,433

Equity securities, current

1,746

1,559

Premium receivables

5,834

5,279

Self-funded receivables

3,605

2,849

Other receivables

3,246

2,830

Other current assets

4,701

4,060

Total current assets

50,238

45,751

Long-term investments:

Fixed maturity securities

581

562

Other invested assets

4,917

4,285

Property and equipment, net

3,733

3,483

Goodwill

24,399

21,691

Other intangible assets

10,540

9,405

Other noncurrent assets

1,689

1,438

Total assets

$

96,097

$

86,615

Liabilities and equity

Liabilities

Current liabilities:

Medical claims payable

$

13,076

$

11,359

Other policyholder liabilities

5,285

4,590

Unearned income

1,081

1,259

Accounts payable and accrued expenses

5,598

5,493

Short-term borrowings

175

—

Current portion of long-term debt

849

700

Other current liabilities

7,730

6,052

Total current liabilities

33,794

29,453

Long-term debt, less current portion

22,217

19,335

Reserves for future policy benefits

774

794

Deferred tax liabilities, net

2,397

2,019

Other noncurrent liabilities

1,869

1,815

Total liabilities

61,051

53,416

Shareholders’ equity

Common stock

2

3

Additional paid-in capital

9,109

9,244

Retained earnings

25,874

23,802

Accumulated other comprehensive (loss) income

(17)

150

Total shareholders’ equity

34,968

33,199

Noncontrolling interests

78

—

Total equity

35,046

33,199

Total liabilities and equity

$

96,097

$

86,615

Anthem, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

(In millions)

Six Months Ended June 30

2021

2020

Operating activities

Net income

$3,468

$3,799

Adjustments to reconcile net income to net cash provided by operating activities:

Net realized (gains) losses on financial instruments

(168)

52

Depreciation and amortization

591

556

Deferred income taxes

(8)

60

Share-based compensation

133

134

Changes in operating assets and liabilities:

Receivables, net

(1,632)

(313)

Other invested assets

(44)

24

Other assets

(247)

(486)

Policy liabilities

1,912

1,024

Unearned income

(180)

(110)

Accounts payable and other liabilities

560

1,868

Income taxes

106

1,313

Other, net

(303)

104

Net cash provided by operating activities

4,188

8,025

Investing activities

Purchases of investments

(11,221)

(11,135)

Proceeds from sale of investments

6,345

4,724

Maturities, calls and redemptions from investments

2,246

1,836

Changes in securities lending collateral

(642)

(764)

Purchases of subsidiaries, net of cash acquired

(3,442)

(1,906)

Purchases of property and equipment

(489)

(437)

Other, net

(29)

(36)

Net cash used in investing activities

(7,232)

(7,718)

Financing activities

Net proceeds from (repayments of) commercial paper borrowings

300

(400)

Net proceeds from (repayments of) short-term borrowings

175

(700)

Net proceeds from long-term borrowings

2,510

2,329

Changes in securities lending payable

642

764

Repurchase and retirement of common stock

(927)

(584)

Cash dividends

(555)

(482)

Proceeds from issuance of common stock under employee stock plans

141

92

Taxes paid through withholding of common stock under employee stock plans

(93)

(111)

Other, net

375

(124)

Net cash provided by financing activities

2,568

784

Effect of foreign exchange rates on cash and cash equivalents

(7)

—

Change in cash and cash equivalents

(483)

1,091

Cash and cash equivalents at beginning of period

5,741

4,937

Cash and cash equivalents at end of period

$5,258

$6,028

Anthem, Inc.

Reconciliation of Medical Claims Payable

Six Months Ended

June 30

Years Ended December 31

2021

2020

2020

2019

2018

(In millions)

(Unaudited)

(Unaudited)

Gross medical claims payable, beginning of period

$

11,135

$

8,647

$

8,647

$

7,266

$

7,814

Ceded medical claims payable, beginning of period

(46)

(33)

(33)

(34)

(105)

Net medical claims payable, beginning of period

11,089

8,614

8,614

7,232

7,709

Business combinations and purchase adjustments

420

339

339

—

199

Net incurred medical claims:

Current year

48,343

39,978

85,094

78,695

69,581

Prior years redundancies⁽¹⁾

(1,772)

(700)

(637)

(500)

(930)

Total net incurred medical claims

46,571

39,278

84,457

78,195

68,651

Net payments attributable to:

Current year medical claims

37,533

31,625

74,629

70,294

62,748

Prior years medical claims

7,767

7,041

7,692

6,519

6,579

Total net payments

45,300

38,666

82,321

76,813

69,327

Net medical claims payable, end of period

12,780

9,565

11,089

8,614

7,232

Ceded medical claims payable, end of period

41

90

46

33

34

Gross medical claims payable, end of period

$

12,821

$

9,655

$

11,135

$

8,647

$

7,266

Current year medical claims paid as a percentage of current year net incurred medical claims

77.6

%

79.1

%

87.7

%

89.3

%

90.2

%

Prior year redundancies in the current year as a percentage of prior year net medical claims payable less prior year redundancies in the current year

19.0

%

8.8

%

8.0

%

7.4

%

13.7

%

Prior year redundancies in the current year as a percentage of prior year net incurred medical claims

2.1

%

0.9

%

0.8

%

0.7

%

1.3

%

⁽¹⁾

Negative amounts reported for net incurred medical claims related to prior years result from claims being settled for amounts less than originally estimated.

Anthem, Inc.

GAAP Reconciliation

(Unaudited)

Anthem, Inc. has referenced “Adjusted Net Income” and “Adjusted Net Income Per Share,” which are non-GAAP measures, in this document. These non-GAAP measures are not intended to be alternatives to any measure calculated in accordance with GAAP. In addition to these non-GAAP measures, references are made to the measures “Operating Revenue” and “Operating Gain.” Each of these measures is provided to further aid investors in understanding and analyzing the company’s core operating results and comparing Anthem, Inc.’s financial results. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein. A reconciliation of the non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP, together with a reconciliation of reportable segments operating gain to income before income tax expense, is reported below. Prior amounts may be grouped differently to conform to current presentation.

Three Months Ended

June 30

Six Months Ended

June 30

(In millions, except per share data)

2021

2020

Change

2021

2020

Change

Shareholders’ net income

$

1,793

$

2,276

(21.2)

%

$

3,458

$

3,799

(9.0)

%

Add / (Subtract):

Net realized (gains) losses on financial instruments

(172)

(29)

(168)

52

Amortization of other intangible assets

90

93

170

176

Loss on extinguishment of debt

5

3

5

4

Transaction and integration related costs

12

11

21

23

Litigation expenses

6

21

12

29

Tax impact of non-GAAP adjustments

6

(25)

(19)

(71)

Net adjustment items

(53)

74

21

213

Adjusted shareholders’ net income

$

1,740

$

2,350

(26.0)

%

$

3,479

$

4,012

(13.3)

%

Shareholders’ net income per diluted share

$

7.25

$

8.91

(18.6)

%

$

13.95

$

14.85

(6.1)

%

Add / (Subtract):

Net realized (gains) losses on financial instruments

(0.70)

(0.11)

(0.68)

0.20

Amortization of other intangible assets

0.36

0.36

0.69

0.69

Loss on extinguishment of debt

0.02

0.01

0.02

0.02

Transaction and integration related costs

0.05

0.04

0.08

0.09

Litigation expenses

0.02

0.08

0.05

0.11

Tax impact of non-GAAP adjustments

0.02

(0.10)

(0.08)

(0.28)

Rounding impact

0.01

0.01

0.01

—

Net adjustment items

(0.22)

0.29

0.09

0.83

Adjusted shareholders’ net income per diluted share

$

7.03

$

9.20

(23.6)

%

$

14.04

$

15.68

(10.5)

%

Full Year 2021

Outlook

Shareholders’ net income per diluted share

Greater than $24.89

Add / (Subtract):

Net realized gains on financial instruments

($0.68)

Loss on extinguishment of debt

$0.02

Transaction and integration related costs

$0.08

Litigation expenses

$0.05

Amortization of other intangible assets

Approximately $1.42

Tax impact of non-GAAP adjustments

Approximately $(0.28)

Net adjustment items

Approximately $0.61

Adjusted shareholders’ net income per diluted share

Greater than $25.50

Three Months Ended

June 30

Six Months Ended

June 30

(In millions)

2021

2020

Change

2021

2020

Change

Reportable segments operating gain

$

2,081

$

3,360

(38.1)

%

$

4,242

$

5,554

(23.6)

%

Net investment income

400

57

691

311

Net realized gains (losses) on financial instruments

172

29

168

(52)

Interest expense

(205)

(201)

(397)

(395)

Amortization of other intangible assets

(90)

(93)

(170)

(176)

Loss on extinguishment of debt

(5)

(3)

(5)

(4)

Income before income tax expense

$

2,353

$

3,149

(25.3)

%

$

4,529

$

5,238

(13.5)

%

Forward-Looking Statements

This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as “expect,” “feel,” “believe,” “will,” “may,” “should,” “anticipate,” “intend,” “estimate,” “project,” “forecast,” “plan” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward- looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the U.S. Securities and Exchange Commission from time to time, which attempt to advise interested parties of the factors that affect our business. Except to the extent otherwise required by federal securities laws, we do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof. These risks and uncertainties include, but are not limited to: the impact of large scale medical emergencies, such as public health epidemics and pandemics, including COVID-19, and catastrophes; trends in healthcare costs and utilization rates; our ability to secure sufficient premium rates, including regulatory approval for and implementation of such rates; the impact of federal and state regulation, including ongoing changes in the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, as amended; changes in economic and market conditions, as well as regulations that may negatively affect our liquidity and investment portfolios; our ability to contract with providers on cost-effective and competitive terms; competitive pressures and our ability to adapt to changes in the industry and develop and implement strategic growth opportunities; reduced enrollment; unauthorized disclosure of member or employee sensitive or confidential information, including the impact and outcome of any investigations, inquiries, claims and litigation related thereto; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon; our ability to maintain and achieve improvement in Centers for Medicare and Medicaid Services Star ratings and other quality scores and funding risks with respect to revenue received from participation therein; a negative change in our healthcare product mix; costs and other liabilities associated with litigation, government investigations, audits or reviews; risks and uncertainties related to our pharmacy benefit management (“PBM”), business including non-compliance by any party with the PBM services agreement between us and CaremarkPCS Health, L.L.C.; medical malpractice or professional liability claims or other risks related to healthcare and PBM services provided by our subsidiaries; general risks associated with mergers, acquisitions, joint ventures and strategic alliances; changes in U.S. tax laws; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; possible restrictions in the payment of dividends from our subsidiaries and increases in required minimum levels of capital; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; the potential negative effect from our substantial amount of outstanding indebtedness; a downgrade in our financial strength ratings; the effects of any negative publicity related to the health benefits industry in general or us in particular; failure to effectively maintain and modernize our information systems; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association; the impact of international laws and regulations; intense competition to attract and retain employees; and various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005316/en/

Anthem Contacts:

Investor Relations
Stephen Tanal

[email protected]

Media

Leslie Porras

[email protected]

KEYWORDS: United States North America Indiana

INDUSTRY KEYWORDS: General Health Professional Services Health Insurance

MEDIA:

Posted on July 21, 2021 6:03 am
Baozun Announces Changes to Board of Directors

BEIJING, China, July 21, 2021 (GLOBE NEWSWIRE) — Baozun Inc. (NASDAQ: BZUN and HKEX: 9991) (“Baozun” or the “Company”), the leading brand e-commerce service partner that helps brands execute their e-commerce strategies in China, announced today that Ms. Yang Liu has been appointed to its Board of Directors effective from July 21, 2021, and that Ms. Jessica Xiuyun Liu has resigned from its Board of Directors for personal reasons, effective from July 21, 2021.

Ms. Yang Liu joined Alibaba Group in September 2014 and currently serves as a senior expert managing the consumer strategy center and partnership development center of Alibaba’s Tmall business group. In this role, she leads the promotion of digital brand transformation across a variety of industry verticals by leveraging Alibaba’s advanced data technologies, and promotes comprehensive Tmall ecological partnership capabilities that bring technology into best practices. In addition, Ms. Liu created the framework of Tmall consumer strategy methodology and widely applied it to common strategy standards.

Prior to Alibaba Group, Ms. Yang Liu worked at IBM from September 2008 to September 2014 and was responsible for implementing cross-industry CRM solutions for IBM’s global business consulting division, and she supported leading global brands in delivering customer-centric digital transformation projects. Ms. Liu received her bachelor’s degree and master’s degree from the Shanghai University of Finance and Economics in 2006 and 2008, respectively, and received an MBA degree from the University of Manchester in 2016.

Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun commented, “On behalf of the Board, I would like to warmly welcome Ms. Yang Liu to the Board. I am confident that her deep experience in e-commerce operations and her familiarity with brands, especially in fashion, will prove extremely valuable as we continue to evolve our strategy to generate sustainable growth over the long term.” Mr. Qiu added, “I would also like to thank Jessica for her substantial contribution to Baozun during her tenure on the Board and wish her success in her next endeavors.”

About Baozun Inc.

Baozun Inc. is the leader and a pioneer in the brand e-commerce service industry in China. Baozun empowers a broad and diverse range of brands to grow and succeed by leveraging its end-to-end e-commerce service capabilities, omni-channel coverage and technology-driven solutions. Its integrated one-stop solutions address all core aspects of the e-commerce operations covering IT solutions, online store operations, digital marketing, customer services, and warehousing and fulfillment. For more information, please visit http://ir.baozun.com.

Safe Harbor Statements

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance,” “going forward,” “outlook” and similar statements. Statements that are not historical facts, including quotes from management in this announcement and statements about the Company’s strategies and goals, are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s operations and business prospects; the Company’s business and operating strategies and its ability to implement such strategies; the Company’s ability to develop and manage its operations and business; competition for, among other things, capital, technology and skilled personnel; the Company’s ability to control costs; the Company’s dividend policy; changes to regulatory and operating conditions in the industry and geographical markets in which the Company operates; and other risks and uncertainties. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission and the Company’s announcements, notice or other documents published on the website of The Stock Exchange of Hong Kong Limited. All information provided in this press release is as of the date of this press release and is based on assumptions that the Company believes to be reasonable as of this date, and the Company does not undertake any obligation to update any forward-looking statement, except as required under the applicable law.

For investor and media inquiries, please contact:

Baozun Inc.:
Ms. Wendy Sun
Email: [email protected]

Christensen
In China
Mr. Rene Vanguestaine
Phone: +852-6686-1376
E-mail: [email protected]

In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: [email protected]

Posts pagination

Previous page Page 1 … Page 28,477 Page 28,478 Page 28,479 … Page 42,131 Next page

Recent Articles

ADS-TEC Energy Reports Preliminary and Unaudited Financial Results April 13, 2026 3:43 am

FTI Consulting Appoints Benedict Brogan to Strategic Communications Segment April 13, 2026 3:03 am

BitGo and tradias Expand Access to Institutional Crypto Liquidity April 13, 2026 3:03 am

PureTech Health: Notice of Results April 13, 2026 2:08 am

Baker Hughes Announces Sale of Waygate Technologies to Hexagon April 13, 2026 2:03 am

Dupixent® (dupilumab) Approved in the EU as the First Targeted Medicine to Treat Young Children with Chronic Spontaneous Urticaria (CSU) April 13, 2026 1:07 am

Innate Pharma to Hold Its Annual General Meeting of Shareholders on May 21, 2026 April 13, 2026 1:05 am

Number of Shares and Voting Rights of Innate Pharma as of April 9, 2026 April 13, 2026 1:03 am

Faraday Future Founder and Co-CEO YT Jia Shares Weekly Investor Update: Twelve More EAI Robots Shipped, with Plans to Share More Progress and Milestones in Building FF’s EAI Education Ecosystem Coming Next Week April 12, 2026 9:14 pm

Kornit Digital Redefines Apparel Production for the On-Demand Era Unveiling Atlas MATRIX at Konnections 2026 April 12, 2026 6:03 pm

Proudly powered by WordPress